Give Mortgage with Subject to


You must be logged in to reply to this topic.

Viewing 2 posts - 1 through 2 (of 2 total)
  • Posts
  • Anonymous

    Don,

    I’m reposting your question here instead of the “introduce yourself” area

    Quote:
    Posted By DON WEDE on 09/01/2007 11:40 AM

    Don Wede- Question?

    I want to give a mortgage back to someone I am buying a home from subject too an existing favorable first mortgage. What type of verbiage to I want to put in the mortgage? I am not giving them any cash consideration. This mortgage will provide the seller with recourse for foreclosure if I would ever default on the first mortgage.

    Your ideas are welcome.

    Thanks

    Don Wede

    Anonymous

    Don,

    Are you going to be on the Alaska cruise?

    If so, I will be talking about buying subject to deals with a seller finance wrap so they get a a note and a deed of trust ( or mortgage) and provide the paperwork I use in Texas.

    You actually want that to be a NON-recourse note. That means that they can get the house back if you default but they can’t come after you personally for any money or damages. ( also known as an exculpatory clause)

    I suggest you also do NOT include a due on sale clause, which will give you the ability to WRAP-THE WRAP and selll the house with seller financing if you wanted to. keep your options open.

    Don’t put a balloon on it either. You want as much flexibility as possible.

    Jackie

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.