A real estate agent should be able to help you with this.
Be prepared for sellers to reject the subject to part, if they are in foreclosure. Are you offering to get the property current?
Also be prepared for lienholders (Junior or senior) to accelerate the loan and call it due.
Originally posted by @David Sandoval :
Hello guys, I'm a newbie and want to do my first deal as "Subject to" existing finance on property in foreclosure. Where can I get a good template or contract with favorable contingencies? Any help or advice is greatly appreciated.
"Danger, Danger Will Robinson" (the robot used to say that on Lost in Space.)
Taking a foreclosure Subject To is a very advanced technique with lots of pitfalls in a state like California. At a bare minimum, bring the loan current and give some equity to the seller. Get a Title report, close through Escrow and have an attorney involved. Get all proper disclosures and understand the risks. Keep lots of money in reserve to make the payment every month without fail regardless if you lose your job. Have an exit strategy.
Use an attorney. Do not use a real estate agent, they are not equipped for this.
Template won't suffice in protecting yourself or seller for these type of transactions. Handle with care.
@Robert Gilstrap Any chance you could send me a copy of the subject to contracts you are using?
Depends on what you mean by contracts? You don't need a special contract to buy subject to.
@Ronald Holmes there are contracts in the FilePlace above under the tools tab. However as said, this is an advanced strategy. You should be asking an attorney for a contract. Contracts are serious business and unless you already know contract law you should get serious legal advice.
I will rephrase or add to what @Robert Gilstrap said you don't need a specific piece pf paper. You need the knowledge of what the piece of paper means.
@Robert Gilstrap I have a contract i use for traditional wholesale deals but i am looking for a contract to close a subject to. @Ned Carey Thank you. I have an attorney but I was looking to bring a template contract to him. I am familar with what the process means. I have already agreed upon a price with seller as well as found a renter willing to pay 600 more than the mortgage. I'm simply looking to make sure i have the right paperwork.
it's good that you have an attorney. You may need one if the seller gets buyer's (sellers?) remorse and accuses you of equity stripping if the property is in or near foreclosure. You have to be a licensed foreclosure consultant in California, barring very specific exceptions. Assuming you have no issues with that front, you also have to deal with the lender accelerating the note for the transfer. They can. They do. You would have no defense either if you did a wrap around or subject to. Will they? Who knows but unless you have a solid exit strategy, it's still a huge gamble where you wont' know whether it was worth it or not until its over.