New Sub 2 DEAL FHA

I have a sub 2 deal. Escrow saying they will not do it because it is an Fha loan… What shall i do?

Don’t go through escrow.

Sellers will only do the deal if we go thru escrow. They feel more secure that way.

How are closings handled in your state? Title company, attorney, either/or? In my state attorneys close deals, so I got a reference from another investor on attorneys that would close creative deals. That’s what I recommend, go to your REIA and ask for references. Then call that lawyer and see if they’ll do subject to deals. If you have to explain to them what sub2 is, then find another lawyer. If they’re familiar with creative deals, they’ll know how to do it.

Well, the simple answer is you don’t have a sub2 deal then. Just saying.

The more complicated question would be, “What kind of FHA loan are we talking about?”

If this is a low-income-assisted, owner-occupant-required FHA type, then it’s illegal to take sub2 anyway. So, the title company is right to reject handling this transaction. And they’re saving you a lot of potential grief.

However, short of that, and I would find a different title company, or at least get a second opinion. Not all title companies are created equal. Trust me.

If all else fails, you can wish the seller good luck on avoiding foreclosure, because you’re not going through an escrow company on this transaction.

And what’s this, ‘they feel more secure that way’ crap. They’re losing their house. You’re their only option. Are you sure it’s not you who feels more comfortable? Why would the seller care how you helped him avoid a foreclosure? He’s got nothing to lose, and everything to gain.

Meantime, are you in control of your deals, or is the seller? If you’re not gonna be in control, you’re working the wrong niche. You should just be a real estate agent, and surrender your soul to sellers, regulators, and your broker. I mean pffft.

Meantime again, if this is not a vanilla FHA loan, and you still want to close on it, then you simply tell the seller, “My dime. My rules. And this is how we’re closing on the deal. Never mind I’m paying to save your butt from a foreclosure.”

And then get the deal done the way that works for you. Or walk away.

Question: Why aren’t you getting some sub2 training?

You would know how to create trusts to avoid title transfer problems; how to secure administrative rights to the loans to bypass paying for an escrow services; how to verify the title to bypass title insurance; and how to make sellers feel safe and secure about you, without paying for things that interfere with sub2 deals otherwise.