Hello Peeps,
I have a situation where I am the buyer of a subject to which I’m going to assign to the final buyer. The final buyer is supposed to take over mortgage payments and then pay off the loan within 36 months by selling the property and use the proceeds from that sale to pay off the seller the seller’s portion of the equity.
The seller has a Prepayment penalty on their current mortgage preventing them from selling without a huge penalty ($17K) and they can’t make their payments to hold it long enough for a sale on the current market.
My question is: Is it best to put all of the conditions of the purchase and ultimate sale by my final buyer into one contract or should I separate the “subject to” part from the “pay off the owner
s equity” part?
My thoughts were to put an addendum to John “Cash” Locke’s “Buy Offer,Acceptance and Deposit Receipt” contract (the one in his Subject To course) stating the terms of equity split upon final sale by the Buyer. What do you guys think?
Thanks,
Bluecat