Finding Subject to Houses ?

I'm new,but, from what I gathered, check into the Expired Listings from a Real Estate agent. These are homes people wanted to sell, but, didn't.

Tori

In most cases people are not advertising the home with seller financing, so be sure to introduce this to your seller to see if they are willing. One way to approach this is to say: I'm serious about buying your home but am not in a situation right now to qualify for a loan through a bank. I know you really need to get rid of this house so I have an idea that may help us both. What if we were to draw up a private note between the tow of us that would allow me to make payments to you, then you can in turn pay on your mortgage. This would allow you to get out from under the monthly payments of the house and as I continue to make regular payment on the mortgage this will help to improve their credit score.

Good Luck!

One of the best ways to get anything done is through networking. Someone told me to join a bartering group, where I may find realtors willing to do deals. They provide the expired listings and I get the deal done and they earn money.

I am not sure about the bartering thing, but I definitely believe that if you can get a realtor to give you access to expired listings, I would go with it.

Hey Jeff as always great input!

When you mention above that "it will help them improve their credit" are you referring to the Seller or the potential buyer improving their credit? Im a bit confused as I thought I read somewhere that if the seller agrees to do an owner finance with you (the buyer) and you are making the payments to them and then they make their payments to the mortgage company(as they normally would) is there some clause that can be included so (the buyer) is on the deed in order to clean up their credit situation? Is that a possibility?
Thanks
Marc

If you're in Texas lease options are illegal, so taking a house subject to isn't a greaet idea.

Hey Marc,

I think he meant the seller, as when you do a subject to, the sellers remain on the note, and you make the payments. The deed shows ownership of the property. The Trust deed shows that such and such bank has a secured interest in the property because they've lent money on the house. If you do owner financing, there will be a trust deed recorded, but it will not show up on your credit.

I'm excited; I'm about to do my first subject to, but I am doing it a little different. It is my cousin's property, so I'm doing a trust and he and his wife will still have a total of 10% interest in the properties's equity, thereby making it so the lender can't call the mortgage due (a beneficiary has to have at least 10% interest in a trust); and my company is going to be the managing company for the trust. That is how I will take the property subject to. I am buying it only for what is owed, and will give my cousin 10% of the proceeds when I do sell the house via lease option; whether it be in 1 year or 10 years. I'm paying 10K below FMV, it needs no work, and plan to put it on a lease option to buy. This one's in GA. No cash out of pocket. Win/Win for both of us!

This one fell into my lap, but you can try to look for divorce records and bail bonds at the courthouse to get some leads who may sell cheap or do subject tos for a start.

You can still do either of the following in Texas, a Pure option agreement or a rolling option. Both are unilateral, which means the obligation to perform rest only with the optionor. All current Texas legislation has to do with executory contracts. As long as you are not gaining equitable interest in the property, you are not breaching the doctrine of equitable conversion. You could even do increased payment options.

Longhorn

Please provide proof that in TX it is illegal. I would like to see for myself.

http://www.lease2purchase.com/wwwboard/archive/index.php/t-177.html

But, this thread also has some more info on what longhorn was talking about.

Now, this thread mention NC. Grumble. So, I have to go research NC lease options laws now!

I tell you what, I can't provide proof it's illegal via the actual law but I can say my sister who is an attorney is still holding on to a mortgage to a house in texas she doesn't want and paying another one in a new state and can't do a lease option beacause due to her research and others it isn't legal. She currently rents the house out with no option on it.

I just went off that. I wouldn't let that be discouraging though. Maybe there is a way around it, and there are numerous other stratgegies too. Keep me updated, and good luck!