I am a new investor. I recently acquired a house in Texas from another investor who lives out of state and couldn’t get it sold. The house was purchased (by the 1st investor) subject to the existing mortgage (a year ago). The house is in a land trust was assigned to me as beneficiary.
The orginal owner (divorcee) now wants to buy the house back. What is the best way to structure this deal - as the mortgage is still in their name? …and have full recourse if they moved in and defaulted on payments to me?
In addition, is there a way they could (streamline)refinance the first lein?
The principal balance is $84,000 and they are willing to pay $115,000 w/$5,000 down and $1,200 a month. Current PITI is $1,035. I am thinking of an interest only loan for 3-5 years - until they can refinance and cash me out.