Subject To Scenario
If a customer has a 1st mtg and i take it subject to, is there anyway for her to write me a 2nd mtg so she can move away and get some money each month before i retail it? Will the 1st mtg holder be tipped off? Whats the best way to do this, thanks!!
1st mtg amount: 30k
i will get it under contract for 72k
FMV >= 90k
Thanks! But I still don't understand how I'm the one who decides when and how to sell the property when the mortgage is not under my name. Also, the lender is aware of this transaction? How is he going to let me own the property if they didn't even approve me for that amount of money?
The mortgage is secured by the property regardless of who owns the property. The title of the property can be deeded to you. That act does not void the mortgage. The lein still exists, and will until it is satisfied. When you sell the property, and the your buyer brings new financing to the table, the existing leins are paid first.
Don't confuse the situation. The seller currently owns the property. The lender holds a lein against a specified amount of the value of that property. (the balance of the loan).
Hi,
I Have been reading this post and replies, and I am about to be face with this same situation. I also do not understand how and when the Warranty deed is put in my name after doing the subject to, and I find a buyer and sell the property, how the funds at closing will be paid to the mortgage co. under another persons name., and the difference be paid to me.
Is it that the closing agent does not care about whose name the mortgage is in, but the loan number associated to the loan to be paid, and who the property is deeded to. ?????
Please help, I am ready to get this show on the road, the seller is in very early stage of foreclosure, will be signing the authorization to release today, and I got repair estimates yesterday, and would like to get started on repairs now , but need this NAGGING QUESTION ANSWERED.
Thanks for all help !!!!!!!!!
Moving on is probably your best bet. Do not acquire this property sub2, and let them stay there.
If the deal is good enough give them some uhaul money to move. If not pass on. Good Luck
If your okay with breaking the golden rule of never do business with friends or family. I say go for it and get whatever profit you can.