BUYING SUBJECT TOO?

[Guest TOMMY]

OK heres my queston,

I have been doing alot of studing regaurding subject too and my plan of action is to find lis pendins properties and try to pay them for their equity and assume their loan . My quesiton is what procedures will i have to take in order to obtain the property ?I'm sure the owner has alot of late fees and lawyer fees. But ontop of that i'm going to have to talk with the lender and let them know that i am going to catch up on the payments for the previous owner. But as far as the due on sale clause will i have to worry about it? Should i still create a landtrust to trasfer the property? Will i need to get a lawyer involed? What proceedures should i take in order to aquire the property subject too existing financing?

thanks Tommy

 

hey

[Adam King (MI) 1]

Tommy,

First off, you need to educate yourself with subject to material. I wouldn't rely on anything less than at least guidance from a course and mentoring on this issue. You simply need to know what to say to the lender to not set off any red flags.

 

I have done 6 subject tos and still don't fully understand them. That means I have done them with people who knew how to do them. As for using my attorneys on these types of deals, I am starting to use them more and more on everything. There are just too many people out there that like to change their minds.

 

As for dealing with banks and the due on sale clause, I have done exactly what you're talking about, but with lease options. (And disclosed what I was doing) And the bank's answer on the "clause". Mr. King, we don't mean to sound uncouth, but show us the money. They don’t care about the due on sale clause they care about making money. Don't forget, it's still the owner's property before the bank takes it giving them full say on what happens to it before foreclosure.

 

So, to bring a property out of foreclosure (Assuming it hasn't gone to the sheriff sale yet) you just need money. Back payments currant and payments again on time is all the banks care about.

Hope this helps,

Adam

[MichaelC 160]

Tommy, Adam is right. You can't approach this method of investing without proper know how. Either do a few deals with someone knowledgeable and experienced and learn from them. Or, at the very least, purchase and study a course or two on the subject and proceed from there. Consider the cost of your education as a very worthwhile investment in yourself.

[Mark in St. Louis 0]

Tommy,

 

I guy I like that has sone a ton of pre-foreclosure deals is Jeff Kaller. He is also known as Mr. Pre-Foreclosure.

 

HERE is a link to his site and the info and courses available.

[Mark in St. Louis 0]

Wow....sorry for the crappy post before. I guess I should start previewing before I post.

 

Here's what I meant to say:

 

A guy that I like and have seen speak is Jeff Kaller. He's a very straight shooter and to the point.

 

He has done a ton of pre-foreclosure deals.

 

HERE is a link to his web page.

 

You will find links to products and seminars. He has one home study course titled "Short Sale In A Box" that I believe is $250. I have it and though it was very useful. It is a primer course. I think his complete home study course is $895.

 

Hope this helps.