Subject to question from seller

[Timothy Frazier]

Help me out from the sellers perspective.

Say the seller understands and agrees to concept knowing it stays on their credit.

What, from the sellers perspective, protects them if I don’t pay? Say either I pass away or I just flat out quit paying it for whatever reason.

I can get passed the fact that it stays on their credit. But still they have a loan balance but they don’t have ownership anymore. So how can they pay off the loan if I’m not making the payments but they can’t sell it because I now own the property? Is this just something you make clear in the agreement and is a risk that they accept? Do you use a life estate at all?

[Wayne Brooks]

@Timothy Frazier @John Nguyen In a straight sub2 the seller has No recourse, and any “contracts” would probably not be enforceable as they are usually seen as circumventing foreclosure laws.

But.....if instead of a straight sub2, the seller creates a new mortgage, even if for the same amount as his current balance, and “wraps” his mortgage into the one the buyer signs, along with a Note, then the seller has a Mortgagor He can at least foreclose on.

As a seller, if I really needed to do a sub2 type sale, this is the only way I would do it.