OK, THIS IS THE DEAL, WHAT NEXT?

[theinvestorguy]

Hi guys,  please help me move from this stage. What paper work do I really need to make this deal happen in a flash?
Nice 3 bedroom one family home.
Couple is behind 2 months
Needs to walk away and go live with son.
Owes $103,000 to lender.
Property worth $130,000.
They would settle with $5,000.
My question is: To do this quickly as this is my first deal and for less complication with paperwork, just use a general warrany deed (also, how about special warranty deed) along with an affidavit and maybe power of attorney. right???. And to officially complete the deal I record the deed and pay transfer fee and I'm done. right???

PS: Also, for insurance, can I just add my name to the existing policy and remove sellers names?

[javipa]

I pm'd you.   

[Hoosier4life2005]

Post that PM.  I wanna read.

[nsu1997]

Hi guys,  please help me move from this stage. What paper work do I really need to make this deal happen in a flash?
Nice 3 bedroom one family home.
Couple is behind 2 months
Needs to walk away and go live with son.
Owes $103,000 to lender.
Property worth $130,000.
They would settle with $5,000.
My question is: To do this quickly as this is my first deal and for less complication with paperwork, just use a general warrany deed (also, how about special warranty deed) along with an affidavit and maybe power of attorney. right???. And to officially complete the deal I record the deed and pay transfer fee and I'm done. right???

PS: Also, for insurance, can I just add my name to the existing policy and remove sellers names?

Nice deal! There's no need to do a "tabletop closing" unless they're leaving like tomorrow or something. Just get it under contract and write in that you're buying it subject to the existing loan of approximately $103k. Then send the contract to the title company, tell them what you're trying to do, and simply do what they tell you to do. Let them worry about the deed & other paperwork.

Do you have the $5k for the seller, plus closing costs? If not, shop for a tenant buyer during escrow and close them simultaneously, using the tenant buyer's option fee to pay the seller and closing costs.

[javipa]

Post that PM.  I wanna read.

I pm'd you, hoosier.

[Real Estate Seller]

Make sure the lender know you are taking over the loan it could come back to bite you if you don't.

[javipa]

Make sure the lender know you are taking over the loan it could come back to bite you if you don't.

No.

[nsu1997]

Make sure the lender know you are taking over the loan it could come back to bite you if you don't.

Why would you do that?

[Dealhouses]

Do What

Make sure the lender know you are taking over the loan it could come back to bite you if you don't.

No.

[nsu1997]

Do What

Unnecessarily raise a red flag with the lender when taking over a loan subject-to...

[theinvestorguy]

But why would they call the loan due when it's not in their best interest right now.
Especially with the current interest rate.

[nsu1997]

But why would they call the loan due when it's not in their best interest right now.
Especially with the current interest rate.

You're right, but what exactly do you gain by telling the lender? If it's permission you're looking for you'll never get it. They still can call it due anytime they feel like it if they know, but they'll never know unless you or someone else tells them.

Besides, what if interest rates go way up 5 years from now, then they decide to call that loan due because you told them you took it sub2?

[theinvestorguy]

but when i do a new insurance policy they will know...right?

[nsu1997]

As long as the lender is named as the mortgagee on the new policy there shouldn't be a problem. But if this bothers you, leave the original borrower on the insurance and add yourself as an additional insured. And get a letter or POA from the original borrower, giving you any and all proceeds from possible claims.

Remember you're not hiding anything from the lender...if they find out they find out...the point here is there's just no benefit in volunteering this information to them unnecessarily. Besides, the person who may find out will be a low-level processor who makes $30k/year, who likely has no clue what a due-on-sale clause is anyway.

[theinvestorguy]

But why would the seller still be on the policy when they don't have any interest in the property any longer?