All Forum Posts by: Stephen Gailey

 Hi Latausha, Im no longer in Erie, I have since moved to Florida, didnt want to deal with the cold anymore lol. Good luck to you!

Thanks for the response. Was curious because Ive never done a sub2, and IF they call it due, I dont have the means to pay it off. Getting flustered trying to figure out the insurance stuff etc and what paperwork Ill need. Its one of those things where, I know the mechanics of it, but Im getting information overload in my head and its driving me nuts. 

Out of state owner, willing to do sub2, but Im wondering whats the best easiest route to go in Pa, sub2, or contract for deed. Ive done some flips but I plan on holding on to this property long term. 

Deal info: 4/1 that needs some work, but nothing major that I cant do myself except electric. Quoted 6.5k for complete rewire. Willing to sell for whats owed, plus giving me 5k cash. ARV is 40-50k, loan balance is 23k - 5k cash = 17k actual price. Loan has 52 months left on it so its all principle at this point pretty much. $447 p&i, taxes are 1800 and Ins isnt escrowed.

Since theres only about 4 yrs left on the loan, which would you do, take it over sub2, or just do contract for deed. I plan on renting it out. Seller knows all the plans and is open to whatever we want. Hes not behind on anything, has perfect credit yada yada yada, just wants out because previous tenants of 10 yrs destroyed it, in his eyes anyway. Alot of it was brand new when he rented to them so seeing it like it is broke his heart, and hes 5 hrs away. 

What have you had the most success with in regards to what you say to the seller about taking over their payments? How do you bring it up and what do you say to overcome the objections?

Thats what I dont understand, I was VERY thorough when I explained things to them. Wells Fargo exact words to them were that the loan is attached to the house and there is NO WAY they can be separated. Meaning if the loan is in her name, the house has to be in her name. I tried to explain again and again, then told them the bank is straight up lying to them.  Ive been dealing with them for a month or so, been over there numerous times, played video games with the kid and everything. We have all the docs signed and ready to go. I hate being called a scammer and the like.. 

So it seems that my sellers contacted wells fargo and told them about the sub2 deal based on their lawyer telling them they had to, so then wells fargo proceeded to tell them that it was illegal and they werent allowed to do it, so they agreed to do a deed in lieu of foreclosure. Morons.. Oh yea, they called me up SCREAMING that I was trying to rip them off, after I explained everything in GREAT detail, even went over the cya acknowledgments TWICE and they still said I never told them everything. Told me that wells fargo told them that if I take them to court they have the support of corp lawyers etc as well, oh well, next!

 Thanks for your response. The plan after they cancelled was to just get a new policy, with seller added as addl insured as well as the bank. Their agent suggested cancelling it so they can use their refund for new ins on new place. Is this basically what happens doing a sub2 anyway?

On a property im taking sub2 there is PITI, my question is once I get insurance does it also need to be escrowed? Id rather pay it direct to my agent where I can make payments instead of sending the whole years premium to the bank. Homeowner is cancelling their insurance on the 30th, would I want to start coverage on the 30th or the first? Thanks for the help with this..

I would agree with looking over that lease with a fine toothed comb, probably more than once, maybe theres something in there that shes not doing, or is doing that she shouldnt that would allow an eviction. If the rents being paid, theres nothing you can do until the lease is up unless shes breaking the lease another way. Who pays it doesnt matter. Maybe theres something worth more than money to her that you can work with. Have you asked her what it would take for her to move if not cash? 

Another option you have, is to find out the situation with her and this older guy, maybe somethings going on there that you can use to your advantage. I havent seen this suggested, but I guess everyone on this board is a stand up person and would never consider it, and I probably wouldnt either, but, its an option, and thats what you came here for. Maybe he is married, maybe it is his daughter or another family member, maybe hes taking care of her so she keeps her mouth shut about something else, never know, but Id find out what and go from there. Maybe something you can use, maybe not. 

Good, like I said, if theres meat left for the end buyer I wouldnt worry about what its bought for. Im currently flipping a home that I negotiated down to $4500 and Im selling for $9000, end buyer is ecstatic because theres still alot of meat after repairs for him, he doesnt care one bit that Ill end up with more than the seller after closing