The main point I was trying to make is that Not having your name on a mortgage or note is a great position to be in and you may want to reconsider trading in a loan that they can’t come after you on for one where they can.
If you wanted to get a new loan on a property that you have taken “subject to” and not have to come up with a down payment, you wil have to wait for the seasoning period to be over. In my experience this has been a year, but the mortgage market is changing rapidly, and I am not sure if this has been affected.
What if i sold the home on a owner finance with say 10 % or more down
You can do this. Keep the mortgage in the sellers name and don’t refi, wait for the new buyer to get their loan and cash the seller out.
[i]Then sold the note to a note buyer
I know the note buyer will more then likely make a cut of up to 50 % of the face value correct ?[/i]
In order to sell the note, you would have to have it. In a “Subject to” deal, the note/mortgage stays in the sellers name (against their credit), but the owner of the note as an asset is the bank. You cannot sell what you do not own, unless you were to pay off the old mortgage and originate a new note. (become the bank)
If you go to the bank and get a mortgage in your name, and pay off the old one, the bank you got the new mortgage through would own that note and you cannot sell it.
But what if it was priced at the full value of the property and the down was to be my full profit ?
I am not sure what was meant by this, but it sounds like there is no equity if I am interpreting this statement correctly.
My other thought is that anytime you cut in someone else on the deal, like selling the note, the profit pie gets sliced thinner.
If you assigned your interest in the property, which may be a viable exit. can you see how you would rather have the mortgage in someone else’s name?
If it were in the previous sellers name, you can take your assignment fee and be on your way.
If the mortgage was refinanced into your own name, You will have to continually make sure the payments are being made
Does this make sense or am I confusing the issue?