Updated over 9 years ago on . Most recent reply
'Subject to' - Contract writing
Hello Everyone,
I am having difficulties trying to write my contract for a 'subject to' deal I'm working on and I'm hoping I can get some clarifications by the gurus in here.
The purchase price for the property is $285K and their mortgage balance is $280K.
My exit strategy is to take over their mortgage payments for a year and seller-finance the property in the mean time. I do not plan to get a conventional loan to purchase the property, but instead having the tenant that I'm owner-financing to to buy it.
What I need clarification on are the following:
1. Does the settlement date have to be a year from now? e.g 08/17/2017
a. if so, how would they be able to deed the property to me if settlement is not until a year from now?
2. Do I list the monthly mortgage payments in the contract, or is this something that would be a given since I'm listing the mortgage balance in the contract.
3. Aside from a Subject-To Purchase contract and Authorization to Release information, what other documents do I need?
I already have a 'subject to' template that I'm using, I just want to have the right verbiage that I need. I've been focusing on wholesaling for a while and this is the first time I'm dealing with a 'subject to' scenario. I'd appreciate your assistance on the matter.
Thank you!