How do I deal with these risks

1. risk as a buyer, is you always 2nd, if seller didn't pay the bank, you lost it all.

You have to understand seller's situation, if seller has enough equity on the property, It is very unlikely he will walk away. In 双呆's case, she has enough equity on her property, although she has done a 0 down deal, she still has big trunk of equity tied to the property. On top of that, how about her effort of rehab/remodeling?

2. risk as a seller, is the buyer don't pay, you have to foreclosure, longer than eviction.

If you are in deed of trust state, like Texas, you can get buyer out of the property in 3 months (foreclosure + eviction). As a seller, you need to understand buyer's situation, you need to review his financial history.

If you are in juducial forecloure state like Florida or Indiana, your risk is much higher.

Warp around mortgage as a strategy, it works. As any strategy, you have to do your own risk assessment.

仅仅熟读战争论和孙子兵法，并不能使你成为一个合格的将领。

 

 

所有跟帖： 

• That's not enough to avoid the risk -texastrader- ♂ (1637 bytes) () 12/25/2011 postreply 11:30:05

• Agree with your point -monkeyboy- ♀ (1608 bytes) () 12/25/2011 postreply 12:11:32