i dont fully understand the sub 2 siuation. correct me if im wrong. u find an owner in distress an offer 2 take over their payments while they still live there and keep the property in their name or is the deed quit claim 2 u. do you set up an agreement to sell the home by a certain time? at what point do u profit, whe the house is sold ? plese coud someone shed some light!
I’ll be happy to give you a quick rundown of how a Sub2 transaction works, but if you are really interested in the concept, please purchase a book or course on the subject before trying to close on a real property.
Example figures: property FMV: $100K, mortgage $80K, your offer $82K.
At closing, seller will sign over property, preferrably via general warranty deed, to you or your company, “subject to” (hence the name of this method) the existing mortgage balance of $80K. You’ll pay them the $2k difference in cash and then the house is yours to do with it what you want for as long as you want (unless your contract/terms specificly say otherwise, but then why would you sign it?). Your only terms where that you agreed to keep the mortgage payments/taxes/insurance/etc current until which time that you decide to sell the property.
As far as the sellers remaining in the house, personally for me, that’s a big NO NO. Don’t close on the property until the sellers are OUT of it. You want people motivated to SELL their property, not stay in their property.
Roger