Sub2 scenario

I have a potential Sub2 I want to get an opinion on.
Nice house in country, 2/2 with extra living room, wraparound deck, sunroom with hot tub, on 2 acres. Asking $150k. At first when I talk to guy about a Sub2, he tells me mortgage is about $550/mo, but says wife is in charge of bills, so he’ll have to verify amount. Calls back next day and says payments are actually $800/mo. I can likely get $800/mo on an LO, but that’d only be profitable at the lower mortage payment. Seems kinda like they’re BSing me with the higher mortage. How do I find out what their payments really are? Should I just offer them $600/mo, take it or leave it. I know they’re motivated.
Thanks in advance for any help.

Noob here; but something I saw was …

I can’t remember the form name but basically it is a doc that gives you permission to contact their mortgage company and get access to all that info.

I read about this from the perspective of “me” selling a rehab to keep tabs on the buyer so you can call the mortgage company and ask about what the hold up is on the loan.

I assume this same doc should give you the rights you need.

So how would I structure the offer? I figure I can give them the $150k they’re asking for down the road, but I’m not sure how to word the offer to tie it up so I can get access to their mortgage info.

The form is called a Loan Information Authorization Form. Hope it helps. Good Luck and Enjoy your blessings!


To Whom It May Concern:

I give (Your Name) authorization to discuss all matters related to my loan on the property at:

between myself and (bank or lender name):

This includes payoff amounts; amounts needed to bring the loan current, and the loan balance.

                    BANK/MORTGAGE LENDER INFO




Loan Number


(Your Name), (Your Title)
Your Company Name[/b][/b] :slight_smile:

Purchasing Property “Subject To” the Existing Mortgage

In preparation for filling out the appropriate forms, the seller should have:
* Copy of the Mortgage, showing loan type (ARM, Balloon, fixed, etc.)
*Recent Mortgage payment coupon or reconcilation sheet, showing current balance, pymt, loan # and escrow amt. (if taxes and/or insurance are not in escrow, present latest bill)
*Copy of Homeowners Insurance policy, so that we may contact them of the policy change.
*Property Survey
*Deed, if one is available
*Listing sheet of home, from builder or previous Realtor
*Copy of closing statement used when seller purchased the home.
*Bill of Sale - the seller should have considered alll items that may be included withthe sale of the home, such as stove, microwave, refrigerator, swing set, satelite dish, patio furniture, lawn mower, etc.
*the seller should have finalized the date of possession for the buyer
*the seller and buyer will finalize the date of the last mortgage payment made by the seller, as well as the date that the utilities and association dues will transfer.
*Lead-Based Paint
*Get a key or access
*Set up your insurance policy
*Bring mortgage(s) current
*Set up automatic payments if paying mortgage payment
*Maintenance/work to be completed (list work that needs to be done):
*check IRS/state tax liens

At this meeting, you will present the details of the following documents. some documents need to notarized.

  • these documents need to be notarized
    the seller will receive one copy of each of the documents below:

Warrant Deed to Trustee*

  • 3 Notarized Orignals, Take to Courthouse and get 2 copies w/ courhouse seal. 1 for seller, 2 for buyer

Standard Real Estate Purchase and Sales Agreement

  • 2 orginals, 1 for seller, 1 for buyer

Seller’s Property Disclosure Statement

  • 2 originals, 1 for seller and 1 for buyer

Limited Power of Attorney*

  • 4 Notarized Originals, 1 for seller, 3 for buyer

Land Trust Agreement*

  • 3 Notarized Originals, 1 for seller, 2 for buyer

Assignment of Beneficial Interest*

  • 3 Notarized Originals, 1 for seller, 2 for buyer

Notice to Insurance Company

  • 4 Originals, 1 for seller, 3 for buyer

Notice to Mortgage/Insurance Company

  • 4 Originals, 1 for seller, 3 for buyer

Escrow Agreement

  • 2 originals, 1 for seller, 1 for buyer

Agreement Addendum

  • 2 originals, 1 for seller, 1 for buyer

Promissory Note

  • 2 originals, 1 for seller, 1 for buyer

Bill of Sale

  • 2 originals, 1 for seller, 1 for buyer

:slight_smile: ;DGood Luck and Enjoy your blessings! :wink: 8)

Thanks a million… at what part in the process would I give them this? With an offer, before an offer, after an offer is accepted?

recheck the post above i revised the answer that i gave.