Im still brand new and trying to educate myself as much as possible by studying, reading books and posts here. I am looking to start investing in the wholesale market. One question is about the equity. I understand what it is to having equity positive or negative. My question is how does it play out if your are wholesaling the home, it being double escrow or an assignment. If they do not 100% own the home then what happens to the money owed when selling the home? A little clarification would be great.
Forgive any typos as I'm on my iPad. If you are paying less than what they owe you would either need to get the lender to agree to a short sale or they would have to bring money to the table. Really you need a home with equity for it to be a deal. Our script if they don't have sufficient equity says
"You would have to be willing to bring money toThe table for this to make sense for me. Are you willing to pay me to buy your home?"
Ryan Dossey, Call Porter | http://Callporter.com | IN Agent # RB15001099
So the buyer gets the sold amount only if they own the home ... right? Also if we put numbers to this to make sense of it. If a buyer purchase a home at 100k and have only 60k equity in it leaving the bank to own 40k of the home. If the home goes for 40k the bank gets it? If over 40 do the buyer get the difference?
@Anthony Billie That is absolutely correct. Any money paid for the property goes FIRST to the lienholder/s. After all liens are paid then the seller gets the balance.
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