New At This-WHAT IS A SUB 2?

I am just starting out with foreclosures. I was wondering if someone can tell/explain to me what a sub2 is.

Thanks,
Stephanie

Comments(4)

JohnLocke12th November, 2004

Stephanie,

Glad to meet you.

This link will help you with a basic understanding.

http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=146

John $Cash$ Locke
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stephsells12th November, 2004

John-

Thanks so much for you help!! I may be contacting you again
JohnLocke12th November, 2004

Stepanie,

Any time, I have no problem talking with Pretty Women, however at my age I am trying to remember why.

John $Cash$ Locke
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radio5213th November, 2004

One reason subject-to is the only way to buy foreclosures with senior liens to the foreclosing lien cheaply (i.e. least amount of cash possible) is because you will never assume a senior lien on someone in foreclosure. That's because if you were to assume the loan their past payment record (the good, bad, and ugly) will immediately be associated to your credit record and your FICO score will drop in the toilet.