I listened to the BP Podcast show 70 and was excited about strategies they mentioned.
I’m in Birmingham, AL and know the local real estate network pretty well. I’m having a hard time finding investors I can work with that know how to do the combination of these strategies. They can do subject-to but they do not combine it with wrapping the mortgage and selling it owner-financed.
I can definitely find motivated sellers where subject-to is the best option. However I need help creating a wrapped mortgage, and selling owner-financed (I can find buyers too). In Alabama we typically have a closing attorney. Would they create the paperwork for the new (wrapped) mortgage, close with the new buyers, and file paperwork with the city/state? How would the title search and title insurance look, and what else is involved?
Are there any Birmingham Alabama investors on biggerpockets that would know??
I have thrown away several deals that this would work perfect on.
- Chad Raggio
Make sure you understand the risks of wrapping to an owner occupant. Read posts about federal Dodd-Frank regulations
The subject-to wrap drill involves creating a new note with the proper language. The attorney can draft the note for you, but it is vital to know what clauses you want to be included in the note. Then it is recorded at the County Records Office.
Title could be transferred numerous ways, typically in the retail buyers name.
The 1st Mortgage lender could trigger a due on sale if they see a change of ownership, insurance is one of the flags that will get their attention.
Talk to your closing attorney. It was well worth our time and money to ask questions of our lawyer when we were doing closings. She would grab examples and show us what was required. We offered to pay for her time, but she never charged us. It was extremely worthwhile.
Talk to Walter. He can help you.
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