All Forum Posts by: Ryan Church

I've came across a very motivated seller for a house that is considered to be in the flood plane.

From what I understand, If I own the house outright without a mortgage, I do not need flood insurance. According to the owner and neighbors, this property and surrounding properties haven't flooded since the 1930's. 

My question is: If I buy this house cash and want to pull some of the cash back out, what's the best way to do this? I've been told possibly a HELOC, but if I do that will I then need flood insurance?

I'm sure this is different by each individual case and state but looking for any advice. Thank you.

@Bill Gulley Thank you for the advice. I feel seeing a local attorney is in my best interest and have been in contact with one today. 

@Jesse T. @Bill Gulley Thanks for the responses. This is starting to seem really complicated but I want to get it done.

I would love to get it set up to where I am paying the mortgage first and then him the difference. Also, as far as I know, the taxes are tied into the land and not the mobile home.

Bill, with your suggestion of the Special Warranty Deed and sub2, is this something I should get a RE attorney involved in or can I find a generic contract online and be fine? Thanks

@Jeremy Tillotson He owes about $9000 with $3000 in back taxes which he says he will pay with from the $8000 I pay for the trailer. I guess I could get a loan to just pay the $9000 remaining on the land and pay him the monthly balance we agreed upon.

@Jeremy Tillotson thanks for the response. How would I go about the sub2? Do I need approved by his lender to take over payments?

So a family member of mine is looking to sell a trailer and the land that's with it.

There was previously a house on the land, but 2 year ago a tree fell on that house and with the insurance money he bought a brand new extended singe wide trailer for $57,000(paid in full). I always thought of trailers as trashy, but this one is pretty nice. It was also barely lived in, as he used it as a "camp" or getaway on the weekends.

He paid off the trailer but didn't pay off the land (previously the mortgage for the house) and still owes $9,000 on the land plus $3,000 in back taxes.

We came to an agreement for a land contract at $8,000 down and $500 a month for 5 years and then I own it all. The issue is he is going to use the down payment to pay off the taxes and continue to pay his monthly payment with my 500 a month until the land is paid off. I was worried about protecting myself and him not actually paying the land off. So we came to this agreement:

He will sign the title of trailer to me for the $8,000 and do a separate contract for the land at 500 a month for 5 years. This makes me feel better as I am getting a trailer worth a lot more if he fails to not pay the land side of the deal.

Is this a good way to structure this deal? Any suggestions and comments would be great. Thank you