I am purchasing a property Subject to in the next month or so, and I am gathering info to prepare myself for that as this is my first sub2.
I scanned through the docs in the FilePlace and did not see any disclosures specific for Sub2's.
Everything will be done through a Real Estate Attorney, so I am not looking for legally advice or documentation that will be used without being reviewed.
I would like to review types of discourses you have used when purchasing sub2 so I can feel comfortable with my understand of everything when I do begin the process.
Thanks in advance!
Here is something I include along with Power of Attorney, Sales Agreement, Insurance Cancellation Letter, Third Party Agreement, etc.
Agreement and Addendum
The undersigned are the owners of property located at ______________________________.
In engaging in a transaction with ______________________________________ as Trustee on this ____________________, we understand that our loan having principal balance outstanding of approximately $___________ will be paid on a monthly basis, but not paid off completely at this time. We understand that this loan will remain in our name and may continue to appear on our credit reports.
Buyer agrees to make monthly payments not to exceed $ _________ per month until the loan is paid in full.The property described above shall be the sole security of this debt, and in no instance shall the Seller look to collateral or security beyond the property to recover damages.
If there is a notice of escrow shortage that occurs during the time the seller owned the property, the seller agrees to pay the escrow shortage.If the Seller does not pay the escrow shortage within 30 days of notice, Buyer has the right to deed the property back to Seller.
Seller understands that although our payments will be made on this loan on a timely basis, the lender above mentioned, or its assigns, may demand payment in full of the outstanding balance of the loan.We understand and accept the risks involved and agree to proceed with this transaction in light of these risks.
We further understand that Buyer will make the payments of the loan in a timely manner.However, Buyer cannot make a commitment as to when the above mentioned loan will be paid off completely.
Seller understands and agrees that Buyer may rent or owner finance the property until the retail buyer can obtain new financing.
We agree and understand that the property mentioned above will no longer be legally ours, and we agree and understand that we may not legally depreciate said property on our federal or state tax returns, nor may we claim any income tax deduction for the interest payments, taxes or other expenses thereon.
@Rocky V. - Awesome! Thank you very much.
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