Subject To & Local Banks

myfrogger profile photo

Although this may be a a question already asked (I couldn't find it searching), is taking a property sub2 the existing mortgage when the mortgagee is a local bank something to stay away from?

I have thoughts along on both sides of the fence and was curious to anyone elses thoughts and/or experiences.

Comments(5)

  • JonathanRexfordFL15th July, 2004

    No problem. Just make sure you BUY right. :-D

  • JohnLocke16th July, 2004

    myfrogger,

    Not long ago I picked up a Subject To property and Washington Mutual was the lender. They had branches in the city the property was located in.

    When the time came to make the mortgage payment, I walked into the local branch of the bank made the payment and made an address change to the Loan Servicing Company I use at the same time. The teller keyed in the address change, gave me a receipt and thanked me.

    Sometimes we make this way more difficult than it is, probably because of the "Fear Factor" people who have never done a creative investing deal, so unless you do it their way lighting bolts will drop from the heavens on your head.

    John$Cash$ Locke
    [addsig]

  • myfrogger16th July, 2004

    John,
    I work primarily in Ames, Iowa a city of approximatly 50,000 with over half of that students (GO ISU). The local bank has one branch in the city and loans only in this area.

    Do you still stay not to be concered and just go out and take it sub2? I am not inexperienced to investing but this is only my 2nd sub2 deal.

    Thanks

  • miraclehomes16th July, 2004

    Why be concerned? It is no different than if the bank was a thousand miles away. Just do your paperwork, let the bank know that someone else was going to be servicing the property, and go about your day. No big deal. I have Bank One, and a local Credit Union that I have Sub 2 deals with. No Worries!

  • kenmax16th July, 2004

    i have thought "what if the www.pre.owner for some reason decided to call the bank" we can come up with any, any reasons {def. of reason: a excuse stuffed with a lie.} that it will not work but the fact remains that john has completed over 500 sub2 without this happening. thats good enough for me............kenmax

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