A better way to take over a mortgage

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  • Good evening everyone,

    Quick question: Is there a better way to take over a mortgage other than sub 2? I found a seller on Zillow that is managing this property for her grandmother. The grandfather recently passed away and the grandmother just wants to be done with the property. The grandmother owes around $155k and they’re asking price is $260K. The house needs work, looking at the pictures from zillow; I would say around 12K in repairs. This is just an estimate until I can get eyes on the house. What is the best way to approach this potential deal?

    Talk to the grandson. Do they want cash out now in a lump some. Are they happy with some cash up front and then monthly income. Take care of there needs and craft the deal around their needs.

    Thanks Don, I appreciate it. The granddaughter informed me that her grandmother would only accept cash. She was not open to anything creative. I gave her 3 options, I thought my offers would be beneficial to her and her grandmother in the long run.

    Thanks anyway,


    Another way you may be able to get what you want (subject to/seller financing) and the seller gets what they want (cash) is to find a NOTE BUYER who will buy the note at closing.

    Here’s how it would work:

    you would buy the house with seller financing that wraps the underlying loan.
    The title company will create a note and a deed of trust or mortgage
    at closing, a note buyer will buy the note which was created
    the seller gets their cash
    you’d make payments directly to the note buyer

    the note buyer may prefer to take out (pay off) the 1st position mortgage so they are in first position. You would need to discuss this all with them in advance. They would need to approve the language in the note that they are buying too.

    There is always a way… when you think outside the box!

    one more thing.. make absolutely sure you are talking directly with the person buying the note and NOT A NOTE BROKER.

    A note broker is a middle man/woman and has absolutely no authority or ability to actually buy the note themselves.

    Check out First National Acceptance Company. They have been buying paper since the mid 80s. They are a subsidiary of First National Bank of America. They are based in Lansing MI but buy all over the country. They even buy contracts. 855-265-3397 ext. 7637 Grace Chang

    Jackie & Don,

    That is some great advice, I never would have looked at the deal or any deal from that angle. I appreciate your experience and advise.

    Thanks Jackie & Don!

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