Seller Financing & Sub to financing

[Chad George]

If anyone is willing to provide some insight on how to execute either of these strategies it would be greatly appreciated. What contracts do I need? 3rd party note servicers? What are all the steps to protect me and the seller? 

[Jeff Copeland]

Here's a great overview of seller financing (and really any type of private financing works the same way): https://www.biggerpockets.com/...

And there are tons of resources and threads on Sub-To financing on BP. 

[Rick Pozos]

Seller financing: Find someone willing to finance their house to you.

Use the TREC contract. 

Close at a title company. The title company will have an attorney draw up the deed of trust with the terms that you guys have agreed on.

Make your payments, live happily ever after.

Sub-to: Its not financing, its how you purchase the house. There is already financing on the property, you are just making the payments for the owner. Or you can do a wraparound mortgage instead, its cleaner and safer for everyone involved.

There are lots and lots of details. You really need to pay someone who teaches this. I have been in the business about 20 years and I still go to classes about every year. Spend $500 or $1000 to get all those details unless you can figure it all out on your own.

[Chris Seveney]

@Chad George

What state is it in? I can provide you with name of a servicer

[Chad George]

Quote from @Chris Seveney:

@Chad George

What state is it in? I can provide you with name of a servicer

 Whenever I learn how to execute one of these strategies it will be in Texas.

[Nancy Truong]

I agree with Jeff and Rick. There are several types of seller financing. Another additional tip aside from the above posts, is to not go with contract for deed. Texas has strict compliance for seller's with contract for deed since it caused too many issues. Avoid that type of seller finance if possible. I'm assuming you are the buyer (not enough information above to give you more specifics). For instance, seller gives you possession of property. You fall behind on payment or payment is not accounted for. Seller can either evict you or foreclose on you (depending the amount already invested in the property. 

But even if you're not the buyer and possibly on the seller side, there's strict rules you must apply. Anyway good luck!

Notes here about Seller's and Buyer's right: 

If you violate (breach) any term of the contract and the seller wants you out, the seller must give you written notice by certified or registered mail. The notice must tell you want you can do to remedy the breach. If the breach is for nonpayment, it must state what you owe in principal and interest, additional charges (like late fees), and the date of each missed payment.

• If you’ve paid less than 40% of the total purchase price or made less than 48 payments and have not recorded your contract in the property records, you have the right to cure (catch up on all payments due) within 30 days of the notice. If not, the seller can cancel the contract and file an eviction suit in Justice Court to remove you from the property.
• If you’ve paid more than 40% or made more than 48 payments, or if you recorded your contract in the property records and you defaulted on payment after Sept. 1, 2015, you have the right to cure within 60 days of the notice. If not, the seller can post, file, and serve notice of sale as a foreclosure. After a foreclosure sale, the purchaser can file an eviction suit to have you removed from the property
• Nancy Truong, Texas Attorney at Walter & Truong PLLC. 

[Eliott Elias]

Get with Ceshker title and use them for all your sub2 and mortgage wrap stuff. They are attorney owned And can bullet proof all your contracts 

[Chad George]

Quote from @Eliott Elias:

Get with Ceshker title and use them for all your sub2 and mortgage wrap stuff. They are attorney owned And can bullet proof all your contracts 

 Elliot my man you are on top of it! 

[Chad George]

Quote from @Nancy Truong:

I agree with Jeff and Rick. There are several types of seller financing. Another additional tip aside from the above posts, is to not go with contract for deed. Texas has strict compliance for seller's with contract for deed since it caused too many issues. Avoid that type of seller finance if possible. I'm assuming you are the buyer (not enough information above to give you more specifics). For instance, seller gives you possession of property. You fall behind on payment or payment is not accounted for. Seller can either evict you or foreclose on you (depending the amount already invested in the property. 

But even if you're not the buyer and possibly on the seller side, there's strict rules you must apply. Anyway good luck!

Notes here about Seller's and Buyer's right: 

If you violate (breach) any term of the contract and the seller wants you out, the seller must give you written notice by certified or registered mail. The notice must tell you want you can do to remedy the breach. If the breach is for nonpayment, it must state what you owe in principal and interest, additional charges (like late fees), and the date of each missed payment.

• If you’ve paid less than 40% of the total purchase price or made less than 48 payments and have not recorded your contract in the property records, you have the right to cure (catch up on all payments due) within 30 days of the notice. If not, the seller can cancel the contract and file an eviction suit in Justice Court to remove you from the property.
• If you’ve paid more than 40% or made more than 48 payments, or if you recorded your contract in the property records and you defaulted on payment after Sept. 1, 2015, you have the right to cure within 60 days of the notice. If not, the seller can post, file, and serve notice of sale as a foreclosure. After a foreclosure sale, the purchaser can file an eviction suit to have you removed from the property
• Nancy Truong, Texas Attorney at Walter & Truong PLLC. 

 Thank you Ms. Nancy, I was hoping to get some perspective from an attorney on this post and you delivered! 

[Chad George]

Quote from @Chris Seveney:

@Chad George

What state is it in? I can provide you with name of a servicer

Good afternoon Mr. Chris, I am looking to keep my first deal local so it will be in a Texas market. Thank you for help and consideration! 

[Chris Seveney]

@Chad George

I can hook you up with a servicer when the time comes

[Cyndie Rogers]

The was an excellent podcast with Brandon and Pace Morby who uses and explains the Sub To process.   Very informative and easy to find on YouTube. I would suggest starting there.