Buying Sub2 as a licensed agent in Oregon
Hi Folks, 'been a long time since I've been around here, but it's good to be back!
Does anyone have any resources/people to talk to on doing sub2 or AITD/wrap deals as an agent in a state that requires all deals where the licensee is a principle in a Real Estate transaction to be brokered by the principle broker in the office the licensee is associated with?
Can someone correct/supplement my definitions?
I understand the general idea of a sub2 being: Transfer deed of property subject to existing financing, seller keeps the lien on the property in his name, buyer gets possession. Seller is responsible for the payments, so to set the seller's mind at ease, a servicing company is used in junction with a property management company to make sure the bill gets paid. If the payments are not paid, the lien is still valid, and the bank/mortgagor can repossess the house through the foreclosure process, and the seller would at that point take the credit hit.
AITD/Wrap (Same thing?)A new mortgage in the buyers name, that includes the current lien/mortgage on the property is taken out in the buyer's name. More expensive, requires better credit or creative financing, but puts more of the liability on the buyer, as the lien will be in his name. I'm not sure how it works with the original lien on the property here though, does it get wiped out? Or does the original lien stay in place, and the buyer's payment to his new lien get split up and sent to pay the initial lien?
I've asked my title company how they would go about doing a Wrap/Sub2, and she suggested doing a land-sale contract instead of a deed. Thoughts?
Hope you all are doing well!