What do you mean by Sub to Contracts. Hopefully you have done all your research on the property. What type of deal is it. <IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by GREATLAKESLAND on Date 12/26/2003 ]
I am not an expert on this but, I would say that taking title to subject to existing financing is one way of doing preforclosure deals and not a particularly bad way either.
That said, I do not think there is one best way. There may be a way that works more often than not, but every deal is different and needs to be evaluated based on its particular circumstance.
For example, with regard to houses in foreclosure, there have been reports that some lenders will want to requalify the original borrower after the loan has been brought current. I do not remember at what point this actually takes place.
This may be due to the bank wanting to make sure this borrower does not default again. That is, the foreclosure process can be expensive and some banks will not stop the process once it has begun unless they are reasonably sure it will not happen again.[ Edited by Rogue on Date 12/26/2003 ]
I am a novice when it comes to Subject to, but have found it to work well. It makes for a low dollar investment and is a quick and inexpensive process. Buyer beware, you must do your homework and know what you are getting yourself into.
What do you mean by Sub to Contracts. Hopefully you have done all your research on the property. What type of deal is it. <IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by GREATLAKESLAND on Date 12/26/2003 ]
I am not an expert on this but, I would say that taking title to subject to existing financing is one way of doing preforclosure deals and not a particularly bad way either.
That said, I do not think there is one best way. There may be a way that works more often than not, but every deal is different and needs to be evaluated based on its particular circumstance.
For example, with regard to houses in foreclosure, there have been reports that some lenders will want to requalify the original borrower after the loan has been brought current. I do not remember at what point this actually takes place.
This may be due to the bank wanting to make sure this borrower does not default again. That is, the foreclosure process can be expensive and some banks will not stop the process once it has begun unless they are reasonably sure it will not happen again.[ Edited by Rogue on Date 12/26/2003 ]
I am a novice when it comes to Subject to, but have found it to work well. It makes for a low dollar investment and is a quick and inexpensive process. Buyer beware, you must do your homework and know what you are getting yourself into.