- Create a perfomance lien (i.e option mortgage or regular mortgage) - payoff or release is your wholesale fee.
On last deal - I used the perfomance lien method. When I gave the seller an EMD I told them I needed to secure it with a performance lien (in my companies name) in case they tried to flop on me. The title company called me about my payoff. I told them it was the difference between 95k and 105k. End buyer paid all closing costs. On the HUD it states - 3rd mortgage payoff and my dollar figure. What I have found is that motivated sellers can careless about who gets what as long as they get paid. End buyers don’t really know how many mortgages are on the title. They just want to make sure they get clear and marketable title and a good price so they can make some money.
How would I create a performance lien? What is an EMD? How do I file a performance lien?