Quick Question About Closing Subject To
If I do a subject to purchase sale and I assume my buyers mortgage payments do I have to go to a closing?? Or do I just go to the closing when I sell the house to a retail buyer??
Thank you!
Yes, you must go to closing.
It depends on your purchase--it's possible for you to close the purchase yourself, especially if you are NOT "assuming" the mortgage. In sub2, the mortgage remains in place, so you don't need the formal closing to transfer owership (plus you don't need to qualify for the assumption, etc.).
At the sale, there are 2 ways it could go:
1. You sell on a contract for deed or lease/option in which case you can close this yourself. When your buyer fulfills their contract/option period and makes ready to pay you off, you're probably looking at #2 below.
2. All cash sale, meaning your buyer is bringing either your asking price to the table (probably funded by a loan) or the balance of the loan you carried for them (also probably funded by a loan) in which case it won't be your choice on how to close--the lender will most probably require a conventional close.
Andy