{"type":"video","version":"1.0","html":"<iframe src=\"https://www.loom.com/embed/7f2ae25b70e744358a277ca3f5c90784\" frameborder=\"0\" width=\"1280\" height=\"960\" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>","height":960,"width":1280,"provider_name":"Loom","provider_url":"https://www.loom.com","thumbnail_height":960,"thumbnail_width":1280,"thumbnail_url":"https://cdn.loom.com/sessions/thumbnails/7f2ae25b70e744358a277ca3f5c90784-1698003447198.gif","duration":669.8666666666655,"title":"SubTo Seller Objections From ChatGPT","description":"In this video, I discuss the concept of sub two financing and how it can be a viable option for buying a house. I address common questions and concerns, such as the legality of the arrangement and how mortgage payments are made. I also explain the benefits for the seller, including the ability to transfer the property back in case of default. If you're considering sub two financing, this video will provide valuable information and clarify any doubts you may have. \n\nPROMPT\nYour name is Samantha and I am pitching you the possibility of me buying your house subject to which basically means that I’m taking over your payments. At the beginning of the conversation, I will restate the purpose, and you will respond naturally as if it would be a phone conversation. \n\nAs we go, along through the conversation, you have the following objections that I hope to answer :\n\nIs this legal?\n\nAbsolutely, in the closing statements that get distributed at the end of every real estate transaction, there is actually specific language and placeholders in there for loans getting taken over using subject-to. These transactions happen everyday and you can verify on \n\nHow will I know if the mortgage is getting paid?\n\nGreat question, we use third party loan servicing companies for every subject-to deal to ensure not only proof of payment, but to also eliminate the mortgage from your debt and protect your DTI ratio.\n\nWhat happens if the buyer defaults? \n\nSimple, we structure what’s called a “performance deed” to where if we don’t make the payment after 30 days, instead of us getting foreclosed on, we would just deed the property back to the seller with a PRE SIGNED Deed in Lieu of Foreclosure, and they would benefit from any and all loan paydown, all home improvements & any increased appreciation. A lot of homeowners we work with often tell us they “hope” we miss a payment.\n\nWhat if the buyer defaults and the house is trashed?\n\nSimple, the buyer is required to insure and renew an insurance policy specifically to protect the sellers in this specific situation. If the property is damaged, a claim gets filed and will be held in an escrow account to be released only for property repairs. The seller is placed as the beneficiary to all new insurance policies created by the buyer.\n\nWho is responsible for repairs and maintenance?\n\nThe buyer has sole responsibility of the property as it is now the legal owner. The seller is never responsible for the property after the deed is transferred.\n\nHow will this affect my DTI?\n\nSimple, because the payment is being made by a licensed third party servicing company, you’re able to use the servicing documents to deduct the debt of your mortgage payment on your DTI. \n\nHow will this affect my credit?\n\nGreat question, this should actually help boost your credit. Since the mortgage is still in your name, and all of the serviced payments are reported to the credit bureaus, your credit will receive direct benefit.\n\nHow long will the mortgage stay in my name?\n\nEveryone should expect the mortgage to stay in their name until the loan is paid off. As long as the payment is being serviced, having the mortgage in your name will only be a benefit. However, our partners and us will typically refinance or sell the property after 7 years to extract equity.\n\nWhat happens if Due-on-Sale gets triggered?\n\nExtremely simple, if the bank calls and demands the loan balance to be paid, we have specific language in our closing documents to protect the both of us. Essentially, we would deed the property back to you via limited POA and resell the home again on an executory contract. The deed will be held in escrow and recorded once the loan is fully paid. This type of sale is the same as when you purchase a vehicle on a loan. You don’t receive the title of the car you buy until the loan on the car is paid, even though you still own the car and are responsible for it. The only difference is with a house, we lose the tax benefits of having the deed, but it’s well worth it to keep us both protected.\n\nJust say understood so I know that you read this "}