small scenario:
-I find a homeowner to negotiate a subjec to deal
-Homeowner deeds me the property
-Loan is still in the homeowners name while i’m making payments on the house
-Homeowner eventually wants to buy a new property, but their lender is concerned since his/her name is still on this old loan.
Have any of you heard an objection like this from a homeowner fearing this scenario when trying to negotiate a subject to deal? If so, what’s the best response to this objection?
Did you record the deed?
With the loan still in the seller’s name, you are going to have to treat this quite a bit differently.
Maybe I’m not quite understanding the mechanics of subject to investing then. What would be the normal sequence of events, whose name is on what, who owns what, etc.
Find a competent Atty who deals with RE Investors to close these transactions…
If seller is buying a new house, seller can show lender a copy of the HUD-1 showing the transaction… Lender may only except 75% of pmt. 25% of pmt would go on Income/Debt Ratio.