Selling subject to

Hi, everyone. We are looking at selling a property that we are upside down in. Th house has lost $45K in two years. We have a tenant who would like to buy it but has no money down and shaky credit. I don’t know if we should continue renting until they can qualify for a new mort., (The rent covers our expenses.) or sell it to them now subject to, or on a CD so that we can make sure tht the payment is made every month. They are paying us weekly automatically now from their checking account.

Why would anyone want to buy sub2 on an upside down home especially if they have no money. Herbster

Ginny Rueter,

Glad to meet you.

Subject To is a method of Buying not Selling.

You could sell on a Contract For Deed or on a Lease Option with a date that your buyer is required to re-finance the property. If your tenant is making waves about purchasing and you are concerned he may move out, then consider selling with a re-finance date built into the Agreement of your choosing.

Do not discount the property, sell it for balance owed explaining this is the only way you are able to sell it to him. Remember he has shaky credit and higher interest rates above the current rate can be added or a higher selling price can be based on a future purchase date (such as the balance currently owed).

Stay in control and sell on your terms not the buyers…

John $Cash$ Locke

John I would like to talk to you about your subject to course. Whats the best way to contact you?


Left you a message…

John $Cash$ Locke

I wouldn’t consider owner financing them, or transferring the
deed unless they have been in the home for 12 months straight
with on time payments. If they’ve been late even 1 month, don’t
transfer the deed to them. Let them know that you need 12 months
of ON TIME payments, then you can consider transferring the deed.

The first couple of years I started doing subject-to and selling on
lease/options, I sold a few properties to people whose incomes
wouldn’t qualify them for traditional financing. I ended up telling
those buyers that if they make 12 months of ON TIME payments,
I’ll consider owner financing them/transferring the deed. A few of
the buyers were on time and I owner financed them and later sold
those notes and have a few that I still hold onto till this day.

Even if you are upside down, you can still walk away from this
property breaking even, and possibly making a profit. You can charge
a premium for your monthly payments, if it isn’t already high due to
current interest rates on the loan…