I'm a real-estate investor working in SF flips in Western MA, and northern CT. (Springfield MA, Hartford CT area). I'm looking for an attorney who is familiar with Subject 2 contracts.
Anyone have any recs?
Hi @Robyn Coady
I can't help with your need but wanted to jump in and say HI. I'm in Leominster. Nice to see other investors from MA on here. Good luck with your search. This is the second post I have seen in the past couple days about subject 2 deals. I'm interested in learning more about them. I can't, at this point, figure out how they are legal. How does a bank allow somebody to deed their property without paying off the mortgage? I have some research to do I guess...
PM and I can give you a few names for Springfield area attorneys. Also you can join the WMASS REI Club Facebook group and ask that question in there too.
Lastly, look up Ann Bellamy and find her Black Diamond REIA in Worcestor area. She and that group has a wealth of info/contacts.
Rob, Most mortgages contain due on sale clauses. That mortgage is a contract between the borrower and the bank. If you do something that violates the terms of the contract, the bank gets to call the note. That is not a criminal matter, it is a contract issue between two parties. It is not therefore "illegal".
Just like if you have a contract to pay rent. If you don't pay rent, the landlord can take you to court to enforce the contract. But you are not violating the law. It is not "illegal" to not pay rent. There are no rent police. Now, if the landlord decides to use the power of the lease to evict the non-paying tenant, and the courts decide in his favor, the courts issue a writ in favor of the landlord. You get a piece of paper from the courts telling you to leave. If you don't, now the courts instruct the sheriff to enforce the writ. Now they throw you out. and if you resist, now you can be arrested.
Same kind of thing. but you don't get thrown in jail for violating a contract with a bank. not usually, anyway.
@Robyn CoadyI can connect you with an attorney to discuss Sub2s, but she will not be in Western MA, so if @Bob Couture has one for you in your area, that would probably be better. I don't know that I have anyone in Black Diamond who does them regularly, but I don't know. You can join the FB group and pose the question.
Thanks Robyn for bring this up and Ann for sharing your info. I'm in Eastern MA and it the stage of building a team and network to work with in my area.
@Ann Bellamy are drop ins allowed at your meetings?
Not only allowed but encouraged, @James Federico . That's what we're all about. We are free and open to the public. No fees, no memberships, no selling speakers, no multi-level marketing.
That's alotta No s, but what you are left with is great local content and great networking.
We're big supporters of Bigger Pockets, and as a matter, of fact, while I had been in a leadership or ownership role of two other REIAs in the past, it was a conversation with Josh Dorkin that led to what Black Diamond is now.
So by all means, drop in. :-)
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