Need help on how to sell my rental house--real estate contract?

[furnishedowner]

You "subject to" and lease option gurus...I am trying to figure out how to sell a rental house, that is now excess inventory.  I need some basic advice as to what is possible.  I have sold with an AITD (all inclusive deed of trust) before, but it doesn't look like that work here.

The property is a 2-bedroom with maybe a value of $103,000, say.  There is a non-owner occupied loan on at 6.75%, 5 years old, with $53,000 remaining, PITI $538/month.

The loan is with Bank of America, passed on from Countrywide.

I spoke with a title officer yesterday and she said that they will not issue title insurance or do any transaction on a loan that has a due-on-sale clause without a formal assumption agreement.

She said that the old owner would have to keep the insurance on the property and the new buyer would have to get their own policy as well in order to have coverage.

The market is slow in this town right now and I might have to wait months for a conventional sale.  It's time to sell this property if possible,
but any buyer would want title insurance.

Furnishedowner

[MichaelQuarles]

Good to chat

What state are you in?  Weird that the title wont insure a sub2 deal.. Fairly common for me... As long as the liens are on the prelim and buyer acknowledges were good to go..  And you don't have to supply title insurance.

I have to think that a guy with over a thousands posts deserves a few free forms.... If you PM I can send my sub2 agreements to you...

As for the deal... If you want to chat let me know..

Nice chatting

Michael

[furnishedowner]

Michael,
Thanks for the reply.  I'm in New Mexico.

I called the other Title Company in town, and they are willing and able to do a "subject to" transaction, as long as the parties sign a release of liability form, in case the existing lender exercises the due-on-sale clause. They also want an escrowed collection agency set up, which is fine with me.

Now I'm showing the property to a couple of my tenants and trying to make buyers out of them.  Does the new loan get wrapped around the existing loan like an AITD, or is it set up more like a 2nd mortgage?

I will PM you if anything comes of this, I'm probably going to need help for sure.

Furnishedowner

[furnishedowner]

I just noted that the "curse filter" set up altered my original post!  Look at the ***.  Now insert another word for "donkey" in order to make sense of the post.

Too funny!
Furnishedowner

[jlspartz]

I was wondering how the loan was pissed on by Countrywide, lol

[furnishedowner]

It was that, too!

Furnishedowner

[furnishedowner]

Just got a 6-month lease at $1650/month ($55/day) from a gentleman who was paying $100/day at LaQuinta Inn.  I'm happy, gonna hang on to this house now and defer selling it.

Furnishedowner

[Rob in Atlanta]

Very nice!  Now you can call yourself a 'Guru of Prospecting for Buyers on Motel Row.'