Subject to question
Hello Investors,
I am currently working with two homeowners who are very motivated and are willing to sale for what they owe. I have met with both owners and are they're waiting to receive the green light from me. I don't want to hesitate, both properties have more then 20k in equity. My question is what fee's are paid by assumes someone's mortgage and besides purchase agreement, disclosure form and Warranty deed what other paperwork should be included in these deals? Whatever advice would be appreciated. Thanks in advance
Phillip-
Are you taking sub2 or are you assuming the loan? What type of loan FHA, VA, Conv.? The type of loan will dictate what you record. What is your exit strategy? If sub2 you will need to factor typical closing costs (title insurance, escrow closing fees....etc). You can negotiate some of these costs with seller if they're in a good financial position. If distressed, just pay their costs. We don't prorate taxes at closing as the mortgage company is/will be holding those through payments. We always get POA (power of attorney) from the seller that is property specific for all matters that we may incur with owning (utilities, insurance, assessor). Be aware that most POAs expire after 1 year, so we always add that this POA with will be in effect until said mortgage on property is fully satisfied. We also do predrafted letters authorized by the seller to the mortgage and insurance companies stating address changes. All of this is done at closing as we include it in the file.
Hope that helps.
Thanks Dan,
its a conv loan and my exit strategy is lease with option to buy. i have a team that will work with the buyer if their credit is not the best. my goal is to be in and out after a year and a half.
