Please help me with my first deal

General Real Estate Investing
1

Hi, I have found a property that have a good amount of equity. The owner owned about 23K in back payment. The loan is at 235k. Its value is about 330K.and the property is is about to be foreclosed and will be put up for auction. The owner has begun to move out of the house. I can make the back payment to bring the loan current. My question are

  1. If I do a sub2, have the owner sign a warranty deed, Will this make me the owner of the property?

  2. If the owner sigh the warranty deed, and I start to make the monthly payment, Will the lender call the loan since they will find out that the property has a change of ownership (th hazzard insurance will have a different name).

  3. Is there any other way beside financing. I really don’t want to do this because It would take more cash than What I have available. (23k to bring the loan current + 23K for 10% downpayment + money needed to do rehab + 2-3 payment months of holding while doing the rehab).

  4. Would the lender know that the property have a change of owner if I do a land trust instead of sub2 existing loan. Is there any risk involve in this

By the way, I intend to sell the property after I finish doing the rehab work.

I appreciate very much for all your input.

2

Read up on using a land trust to “get around” the due on sale clause. I put “get around” in quotes because it is legal, but that’s what it does for you. You’ll find people are of varying opinions on the use of them.

Maybe change the title of your post if you can do “Need help setting up Land Trust for Sub2 Deal”. You’ll get lots of people responding.