As a first time home buyer, I purchased my home in 2009. I wanted to move on, but because there was no equity in my home, I did a 'subject to' on my first home in 2013. The investor said I had to be 'tied' to the mtge for 5 years, which is up in January 2018. I have reached out to him, ahead of time to find out what needs to be done so that I can be removed from the mortgage. This home was purchased for $92k with a VHDA loan, it is assumable. The investor said in 2013 that I could either have the house deeded back to me or he could buy it from me. Speaking to him a few months ago, he said because of the market, he's not going to buy it from me. Which is NOT what he said in 2013 that it would be based on the market. He said it's about $82k left on the loan. My logic, which I could be wrong-why can't he buy it from me for the balance of the loan? Can this be wholesaled? I've been waiting to be done with this house so I can be free to purchase another property.
Please, any advice you can give so that I can be done with this house would be greatly appreciated!!!
If he's not going to buy it from you, what did he suggest, if anything?
Is the '5 year' agreement in writing? If so, does the contract or closing documents outline what should take place if/when the 5 year period expires?
Have you asked him to deed the property back to you? I doubt he's going to want to simply give up his cashflow/equity without compensation, but if his other option is having a spotlight put on his business practices....letting the local community know how he treats sellers.. he might be more inclined to negotiate.
I apologize for not responding sooner. I did not get any alerts for replies.
@Account Closed -he said he's not going to buy it back bc there's no equity. There wasn't equity when we did the 'subject to' & the neighborhood is not going to increase in value any time soon. I want to move out of the state in the next 3 years and don't want to be tied to VA. I asked him to deed the house back to me, then he mentioned the work he put into the house. The house was a newly renovated house, so in the 3-4 years that I lived in the house, nothing changed. I also believe he is a member of the REIG; I am a member as well. Oh, he did say that I could do a short sale-I said that is not an option bc I have excellent credit and I am not doing anything to jeopardize my credit. He denied everything about the 5 year time limit. I've had it marked on my calendar since the 'subject to' was done. I will go thru the paperwork and update this post.
Thank you both! :-)
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you