How to structure “subject to existing financing” with a seller?
I realized there are many forums discussing “subject to” and how to structure them. I’m seeking advise/ideas how to make an offer attractive to a seller with a buyer benefiting from set financing.
This would be an off market deal. The seller bought and an investment property less than 10 years ago for 65k. The he tried to sell it few years later for 95k but was unsuccessful. Last year I found this house and contacted the seller. I viewed the property but at that time I didn’t know how to structure a deal with out bringing my own financing to the table. The seller is interested to sell the house since he contacted me several times asking if I’m still interested.
There are some renovations/improvements that need to be made therefore I would not offer him asking price, but the house can be a good deal with subject to seller’s financing.
These are my thoughts: Currently, the seller has a 30 years mortgage with 4% fixed financing for 30 years he has been paying for 7 years. Using “subject to existing financing” strategy the buyer (I) would take over current financing for next 10 years with a balloon payment.
As Patrick Henderson stated; Special Warranty Deed (signed over to me), Power of Attorney (everything that has to do with property), Authorization to Release Information
I would offer 5k cash downpayment and pay $200 for next 5 years total 17k directly to the seller and pay off 1k in back water/sewer/reuse.
Any additional additional advice would be greatly appreciated!