Seller is warranty deeding over to me his 5 properties for an agreed upon price. In return I deed over 2 of mine and thus credited the value of that toward purchase price. Mine are free and clear, his have approx. 160k in mortgages on a total of only a few of them. Most are free and clear. The reason he wants to deed them over to me is that I need to have 30 days seasoning to refi, thus paying him off. Purchase price for the 5 pack is 580k, my properties are worth 210k, leaving me owing him 370k. Can someone help me understand how I don't get stuck with the debt? My understanding is that at close of refi, my lender will pay off loans, then pay him the diff between loan payoff and and the 370k owed him. Right?
Not sure what the question is regarding “not getting stuck with the debt”. Assuming you borrowing $370k to pay him the balance, yes your bank will pay off the $160k in current mtgs out of the $370k you are giving to him. Your debt will be the $370k you are borrowing.
Aside from that, why are you doing the “transfer title then refi” as opposed to just a straight mtg for the purchase itself, the traditional way?