Subject To
I am in the process in doing a subject to buy,everthing was going fine untill the seller insisted that he would have to ask the bank if it's legal to do this deal and if this would cause any problems with his loan,How should I reply to the seller.[ Edited by mitchramoo on Date 11/07/2003 ]
I say let him go ask. If I were you I would explain to him what they are going to probably say but don't be afraid of him going.
If he doesn't like what they tell him, tell him to let the bank buy his house.....hell they'll take it if the payments aren't made. He must play your game and don't back yourself into a corner for one deal. there are more out there.
Good answer,
That is soo true. We're the problem solvers here. If this guy doesn't want to deal on your terms he is not motivated and it would seem he does not "qualify" for our program.
You may suggest that he ask his lawyer instead of the bank.
The bank may vary well say that they will call the loan due.
HIs lawyer would probably advise against it from a liability standpoint, but tell him that it is both legal and ethical.
I'd tell him what his lawyer will tell him, and then have him go ask him.
i say let him ask thye bank, but also add in the question if this transaction is illegal, as they know know good and well the sub-2 way is far from illegal, if he is determined to go to his bank load him with the appropriate questions to get a known answer and give him your attorneys card to call for extra legal questions..we have done this in the past and took about 15 minutes to explain to the owner then walked away looking for other deals..sure enough a few days later they call back..hope this helps..
Regards-pat