Owner Financing - Subject two's
Hello all,
I am 19 years old researching subject 2's as a way to buy my first property. I have already found a property but it is off-market. I did a little digging and the owner is being sued by the HOA and is headed towards foreclosure if not eviction. Because homeowners cannot be evicted right now, the case has been paused but remains open. For those of you who have done an owner-financed subject 2, is there anything I should know ahead of time? Everything I am researching says that I can take over the payments without a down payment, is this true? I am based out of Illinois by the way.
@Indya E. Allen
Hi Indya, good luck. To purchase a home with seller financing is good. I would mention 2 things per this situation. First you asked if buy from the seller with no down payment was possible and it is but the seller must have incentive. If you find a rare seller or situation were that is not the case you ar lucky.
Secondly and more importantly is the HOA.
Why are they foreclosing on him? Is he behind in payments. If so can you catch them up? The same is true with the mortgage, if it is behind can you catch it up. Also the HOA has to accept you as an owner. Just because you strike an agreement with the seller does not mean you are in.
I personally don't like condominiums as investments for a few reasons, but they can be good with the right numbers.
Just make sure the HOA is in good shape , the property does not have too many renters and you would qualify for financing as a warrantable condo.
@Indya E. Allen aloha Indya, welcome to the wonderful world of creative financing. Acquiring properties going through foreclosure by way of Subto is completely possible.
One huge thing to be aware of are the arrears to reinstate the mortgage, since they’re behind, and we’re going through a pandemic, the cost the acquire the property may be a bit high, which is fine if the opportunity allows you to make your money back sooner than later. Would love to chat more, I’m willing to help you on this.
@Louis Jeffries The woman that owns the property has lived in it for around 30 years if not more. She has taken out multiple loans but data does not show if she is behind on payments. I was able to find that she is behind on HOA payments which is a little over one thousand dollars. The HOA filed a case against her but due to her lack of showing up she has been served publicly. I don't know if that means I can make a move or not. Also she has under $100,000 left on the mortgage but much more equity in the property.
@
@Jerry Ayala Hello! Thank you for your response and I will definitely contact you soon.