Subject To Real Estate
71Subject To Real Estate
People are always asking me, How can you buy houses Subject to the exsiting mortgage. So I'm going to try and explain here by example. With ever house I buy Subject to , I'm going to blog about the entire process of,
Subject To Real Estate.
First of all What is a subject to?
"Subject to" in it's purest form is buying a house with a mortgage on it and instead of paying off the mortgage, you simply take over the sellers payments. Hence the name "subject to" the existing financing.
I have several leads I am working and will be adding them soon.
The last "subject to" deal that I did was a pretty good deal. The loan was a VA loan with an interest rate of 6.25%. We gave the seller 4k and he gave us the deed. We started making the payments and have ever since. This house was pretty much worth want he owed on it when we bought it. So this was a win-win for the seller and us. He saved thousands in closing costs and commissions. we saved by not having to go to the bank, get a loan and wait for the bank to tell us no for one reason or another.
We have bought many houses under this same scenario. For a look at what we use for marketing to buy houses subject to click here.
Subject To Real Estate is the best way to build wealth at break neck speed.
If you have any Subject To Real Estate Stories, please share them with us.
Cheers,
- Real Estate Marketing Ideas
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Comments
You should always have your attorney close a subject to deal. You can try to qualify for the loan to be removed from the sellers name.This would mean you would have to actually "qualify" for the loan. An easier way would be to refinance the house after you have had it in your name for a year or two.
SELLERS: NEVER SIGN A " SUBJECT TO"!!!!! I did 2 years ago before short sales were in vogue, when I was told to avoid a short at all cost because it would ruin my credit. My "buyer" got my title, moved in, and stopped paying. But, I STILL have the loan. Now I have a $650K and growing unsecured loan in my name. The bank is after me for the money, and is relentless in harassing me for repayment. I have no idea how I'm going to clear this mess. It's ruining me, and getting worse by the day.
Suzanne says:
2 years ago
Hi there, I know a bit about these and want to do one with a seller, it is a great opportunity. My problem is how to explain it to him properly so he feels at ease. Can we go to a real estate attorney and have him draw up the papers? Also, there is no way to ever do this and have the loan taken out of the seller's name is there? Thank you so much for your time and great advice! If you can give me a few tips my e-mail is suzydb@msn.com