"Subject To" And The Closing Process?
Hello everyone,
When you purchase a property subject to, do you have to go through a formal closing process at a title company as you would when obtaining conventional financing?
To make everything clear for me, what are the step-by-step processes that have to take place once the seller says, "sure, you can take over my loan"?
I understand that the first step is to fill out a purchase contract, but once that is done, what is the next step? Do we go to a title company to transfer the deed or is that something we can do without a title company?
Thank you in advance for your help!
Best regards,
Peter
From my understanding, you can do it without an atty. You will need a notary though. As far as the deed, you just have the owner sign a new one which you then record.
This isn't all, the experts on board will no doubt offer more of a complete answer for you.
But I hope this helped a little
quinn
You are going to probably get several different responses here regarding what docs need to be completed to close a sub2 deal. How you choose to do it will depend on your tolerance for risk and your need to CYA.
Check the thread a few threads below on forms needed for subject to.
[addsig]
I bought John's subject - to book listed on this website. It gave a lot of good info. For my first deal, I had an attorney look at everything. In MN, there is a law regarding "equitable mortgage." I wanted to make sure that what we were signing could not be constured as an "equitable mortgage." It took a little research, and after a few CYI's, we made some ammendments to the PA. I would think that every state has different laws and unless you know the majority of them, it would probably make sense to go to a good attorney...
I have done a couple of deals and so far they have worked like a charm...
Derek