All Forum Posts by: Augie Byllott

There are a couple of possible solutions to the issue of a sub 2 seller looking to purchase another home with a traditional mortgage. First, I always recommend they wait a year because it allows you to establish a payment track record. Next, it is important to remember that the current norm is for a lender to consider 75% of rent as income thereby lessening the impact on their DTI but in the case of a sub 2 some lenders take 100% of the payment being made against the mortgage, thereby mitigating any potential impact on the DTI.

They have documentation they can share with their prospective lender such as the HUD as well as your mortgage statement showing that the payments are being made by a party other than them. Different lenders will view the situation in different ways so they should expect to speak with either a mortgage broker who works with multiple lenders or they cn approach nore than one lender to get a handle on their particular underwriting perspective .

It is always a delicate conversation and should be handled in an honest and forthright manner. Usually a seller sell a property subject to because it i giving them a benefit they couldn't otherwise receive (i.e. quick sale or not suffering the impact of no or negative equity).

Last but not least we recommend they do not go back to their former lender so as to not invite any potential "due on sale" issues.

Hope this helps!

Michelle-

Hi, and welcome. I'm also from Central Florida. Check out the Florida Investors Group on this site.

http://www.biggerpockets.com/groups/49

Mel-

Welcome to the forum. What method do you use to generate leads?

Steve-

Hello, and welcome to the forum.

The best short sale strategy is to request a short sale package from the lender. This is done by calling the lender, getting a fax number and faxing a copy of your Authorization to Release Information (signed by the borrower(s)). Then you will have their specific requirements for the short sale package. Every lender has their own requirements, some are more flexible than others. The same goes for loss mitigators, some are easier to deal with than others. If shorting a second only, usually a phone call and offer is acceptable because seconds are usually more flexible..

If the lender requires a listing agreement then get one. The reason is because they won't usually work an incomplete package.

J-

Welcome to the forum. Wholesales are a great place to start. That's the second thing I tell my students to do (after joining their local REI club).

Sanjeev, Welcome.

I hope you are safe and far from harm with all that's been going on in India.

Well, I've been thinking of a name for you all week, but I guess I'll just stick with Jim. ;-)

Welcome to the community, Bernie.

Hello, Tony, and Welcome.