Need online real estate consulation for the Denver Area (Sub 2) (rent, credit)

[nalexandrov]

Hi, I am moving from Alabama to Denver in the fall. I need some consulting regarding doing a Subject 2 transaction in Denver, via email or over the phone. If you can help me out please email me at nalexandrov251 [A T} gmail and we will work out a price, thanks, Nik.

[2bindenver]

What's a subject 2 transaction?

Are you talking about a contingency?

[formercalifornian]

Originally Posted by 2bindenver

What's a subject 2 transaction?

Are you talking about a contingency?

Think Carleton Sheets.

[steveindenver]

What's a subject 2 transaction?

The current owner "deeds" the property to your name but you do not assume the mortgage, instead you simply start making the payments. In the few and rare cases where the current owner has actually managed to pay down some principle on the loan you can in theory pick up a place for less than it is worth. In some cases this might make sense for both seller and buyer if for instance the buyer has no credit or horrible credit.

On the ugly side you will see this type of transaction hawked on late night T.V. and at those "seminars" where people are suckered out of 500+ bucks and made to believe they will make a killing in real estate with NO RISK!! *cough* no.

You also see sub 2's pop up with a very high frequency in the fraud bucket.

[2bindenver]

That's why they are often put in a trust with the owner's name in it, to make it look like the owner still owns it, but the buyer controls the trust.

There are installment land contracts, (make all the payments, then get title) but in CO an attorney has to write them.

[nalexandrov]

Originally Posted by steveindenver

You also see sub 2's pop up with a very high frequency in the fraud bucket.

Do you mean fraud aimed at the buyer or aimed at the seller?

[nalexandrov]

Originally Posted by 2bindenver

That's why they are often put in a trust with the owner's name in it, to make it look like the owner still owns it, but the buyer controls the trust.

This is the process I have heard. Is there any assurance for the seller that I (the buyer) will pay off their mortgage? Is there much risk for the seller? Where does the risk for the buyer lie? Thanks, nik

[2bindenver]

Could go either way - what prevents the seller from selling it to more than 1 party?

The seller is still liable for the full repayment of the loan. What happens when the buyer gets in trouble?

What happens when the buyer wants to move and sell the house?

[nalexandrov]

Originally Posted by 2bindenver

Could go either way - what prevents the seller from selling it to more than 1 party?

The seller is still liable for the full repayment of the loan. What happens when the buyer gets in trouble?

What happens when the buyer wants to move and sell the house?

I have no idea what happens when you get in trouble, you can rent the house out instead of selling it.