Subject Property used as Collateral for Primary Residence

4 Replies

I am looking at a vacant property in my target neighborhood and from what county records indicate, the subject property has been used as collateral for the owner to purchase their primary residence.  Provided there is enough equity in the property, I would like to purchase it as either a flip or rental.  Does anyone have advice on how I could assist this homeowner in getting out of the property when it is being used as collateral? 

Hi Wayne, Thanks for your reply!!  so the owner would need to do a refinance with money down (perhaps from the property I would be buying) on his primary at the same time as I would be purchasing the vacant property?  Does that sound about right?

@Ramona A. you're making it too conplicated.... when you buy the property, the owner would have to use the proceeds from the sale to pay whatever loan is attached to the property. If your offer is less than he/she owes on the loan, the additional money would have to come out of their pocket. It's the same as any real estate transaction where there is a mortgage on the property being sold