Discussion Forum

Newsgroup>> Sub2 2 Homes

MainStart DiscussionLoginSearchClassifiedsBlog
Current Page : 1 of 1

Sub2 2 Homes

Posted by: Dwayne07
Posted on : 7/25/2013 9:50:27 AM

Ok Here is the scenario. My Parents have tried to sell their home on the River for almost 3 yrs. so they can move back to the NC Mtns (Franklin). They have equity approx 75k. They had to file Bankruptcy but was able to keep the house & now the Mortgage Pmts are KILLING them ($2100 mo.). I have tried to think of a way to help them & thought about my wife & I taking their house Sub2 (we wouldn't be able to get a Mtg. since we have a mtg on our personal home). & my parents take our house Sub2 (pmts $1250 mo.). That way it saves them $850 a mo by paying our house note & we pay theirs. They would love to be able to keep the house in the family & so would we. They need atleast 25k from the sale to payoff some debt & have enough to move & get settled in a new place. So we would have to sale our house (while they are living in it) & then we could give them the Proceeds from the sale of our house so they can move to the Mtns. I know this is not a typical situation but trying to be creative so they can move on & get their JOY back! Any suggestions would be appreciated.

Dwayne R.

ReplyReply

Re:Sub2 2 Homes

Posted by: WilliamGA Still Master of ALL I Survey
Posted on : 7/25/2013 11:35:38 AM

Hi Dwayne,

In your situation, you really don't have to do anything creative.

Just switch houses.

They can live in yours and make the payments while you live in theirs and do the same. No paperwork is really needed to make this happen.

You can market yours to sell while this is going on, sell it and give them cash.

Once yours is sold and they are moving, at that time just have them deed their house to you and you keep living there and making payments.

Your situation is much different from one where you are buying a house from a complete stranger. Much fewer moving parts.

Good luck!

William Tingle
www.Sub2Deals.com

ReplyReply

Re:Sub2 2 Homes

Posted by: Dwayne07
Posted on : 7/25/2013 2:25:01 PM

Thanks William!

Do I need to Record the DEED or just hold on to it?

What should I do about the Insurance or just keep things the way they are?

How do we handle the Interest credits for Taxes while we are making the Payments?

Dwayne R.

ReplyReply

Re:Sub2 2 Homes

Posted by: Dwayne07
Posted on : 7/25/2013 2:57:43 PM

Do you know if there are more Companoes that do use the DOS more than others?

If so, their Mortgage is with Wells Fargo & do they call it due more than others?

Thx!

Dwayne R.

ReplyReply

Re:Sub2 2 Homes

Posted by: WilliamGA Still Master of ALL I Survey
Posted on : 7/26/2013 11:38:17 AM

For simplicity, I would just file the deed away until it was needed such as when you sell the property later.

As for insurance, you should both probably change your policies to a non owner occupied dwelling. In your case, with it being close relatives, you may both just ask your insurance agents how it should be handled. No change may be needed.

As for the interest credits, simply claim what you pay. The IRS doesn't care who claims what as far as interest goes just as long as no one tries to claim both.

William Tingle
www.Sub2Deals.com

ReplyReply

Re:Sub2 2 Homes

Posted by: WilliamGA Still Master of ALL I Survey
Posted on : 7/26/2013 11:40:01 AM

I have "heard" that some are more likely than others.

All I can tell you based on experience is that in over 300 sub2 transactions over 14 years and dozens of mortgage companies (including Wells Fargo) I have never had a loan called due.

William Tingle
www.Sub2Deals.com

ReplyReply

Current Page : 1 of 1

 

Reply Title  
Reply Text  

     
Home | Contact Me | Products | Free resources | Downloads / Support | Articles | Newsgroup | Events | Consulting | Testimonials
Success Strories | Faith Corner | Links | Affiliate Program | Privacy Policy | Return Policy

Site by AT Integrated, Inc