Arizona Subject 2 / Wrap

3 Replies

Ok, this is an area I don't usually play in so I had some questions regarding Subject 2 / Wrap deals in Arizona. At our local REIA the other day we had a speaker that claims if a deal is done properly Arizona Law prevents the lender from imposing the Due on Sale Clause.

Is anyone familiar with what I's have to be dotted and t's crossed to make this work?

Bob

Too, how would the above strategy compare with doing a sale with a Contract for Deed / Land contract where the title would stay in the sellers name?  Would that allow the seller to avoid the Due on sale clause?

In either scenario how would the buyer and the seller handle taxes and insurance?  W?ould the seller just get the new loan serviced and escrow the funds there?  

And how would be named not the insurance policies?  The seller has an interest up to the amount of their loan but the buyer has some equity to the extent the value of the property exceeds the loan.

Hi Bob!

I'm curious if you ever got your answer on this post.  I have a similar scenario in Arizona.  @Charlie Tijerina:  is this something you're familiar with??

Thanks!