I'm really inspired by Pace Morby's eloquent talks on creative financing. In particular, the sub-to strategy is fascinating. It got me wondering if there was a sound strategy for handling a shared title and mortgage in a divorce case such that at least one partner could be removed from title and have the existing mortgage disregarded in a debt to income evaluation. Allowing that, ahem, former partner to purchase another home more easily.
in a sub-to deal, the mortgage stays in places as-is. So, it doesn't relieve one of the mortgage holders from "mortgage overhead." The only way to get them off is to extinguish/pay-off the loan somehow.
@Jonathan L Brown All depend how the divorce settlement has been prepared in divorce case. Most of the divorce cases there is clear directions how the property will be handle after divorce.
@Jonathan L Brown All depend how the divorce settlement has been prepared in divorce case. Most of the divorce cases there is clear directions how the property will be handle after divorce.
Thanks Harjeet, maybe put another way, if divorce wasn't technically involved. Was contemplating ways of freeing one of a couple from mortgage overhead. It sounds like technically the same maneuver in a sub-to situation works--the one wrinkle being someone on the mortgage before the contract might take on both the position of the buyer and one of the sellers. That but seems possibly tricky
in a sub-to deal, the mortgage stays in places as-is. So, it doesn't relieve one of the mortgage holders from "mortgage overhead." The only way to get them off is to extinguish/pay-off the loan somehow.
in a sub-to deal, the mortgage stays in places as-is. So, it doesn't relieve one of the mortgage holders from "mortgage overhead." The only way to get them off is to extinguish/pay-off the loan somehow.
Yeah, that does make a lot of sense. I found the missing piece of the puzzle that I was not explaining well:
That's at right about 32:00 minutes in if the link doesn't work as expected.
Sounds like the use of a 'professional servicing company' and a paper trail of that, allows lenders to disregard a portion of the mortgage in a debt-to-income eval. I am not sure what a professional servicing company is--sounds like a class of companies perhaps.
Thanks for the response, this is an interesting idea to explore.
You've to discuss with a very competent lender... I know my lender has told me about sometimes being able to effectively disregard the payment if you can show that payments have been made consistently by somebody else over a good long period....
I am guessing you were trying to link some video???
I didn't know loan modification was a thing, I'll have to see if that's something a particular broker will do. I'm working with Movement Mortgage ATM. Thanks for this idea!