short answer, your taking over the existing mortgage SUBJECT TO the existing terms and conditions of that mortgage. basicly, the loan stays in there name and you make the payments.
In addition, legal contracts are signed which creates a transfer of the “Deed” subject to the existing financing. There are risks associated within EVERY investing technique. Carefully examine the multitude of techniques as select those which match your acceptable level of risk.
Thanks..is there a Title Ownership change? or how does this work? and what type of offer is generally made on this type of deal, is it figured by amount of equity only or am I also responsible for any closing costs etc?
Hey John,
Thanks for the link..great info! Now let me try and get this straight..I assume the loan from the seller, his name stays on the loan, but with the deed I become the owner. Now I sell the house to a non-qual and require him to refinance in 2 yrs. At this point does the house now become sold and in the name of the buyer? What if interest rates have gone up? I'm trying to follow all of this but there seems to be alot to Subject To's. I will read the link again, I have alot of learning to do. I am going to do this(REI)
and I appreciate all of the help on this site.
Thanks
Zipp
When buying Subject To, when does the seller sign the Grant Bargain & Sale Deed? Although I become the owner, how can I raise the interest rates? is this legal just because I am offering owner financing? How can I raise the value of the house 10%-20% w/o putting money into the house?Lastly, when does the non-qual buyer become owner, I don't want to finance to the buyer for the life of the loan...Do I sell the loan to the bank, or is it the buyers responsibility to obtain a loan?
short answer, your taking over the existing mortgage SUBJECT TO the existing terms and conditions of that mortgage. basicly, the loan stays in there name and you make the payments.
In addition, legal contracts are signed which creates a transfer of the “Deed” subject to the existing financing. There are risks associated within EVERY investing technique. Carefully examine the multitude of techniques as select those which match your acceptable level of risk.
Good luck,
Eric & Rosa
[addsig]
Thanks..is there a Title Ownership change? or how does this work? and what type of offer is generally made on this type of deal, is it figured by amount of equity only or am I also responsible for any closing costs etc?
Thanks,
Zipp
zipp,
Glad to meet you.
Try this link.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=146
John $Cash$ Locke
Hey John,
Thanks for the link..great info! Now let me try and get this straight..I assume the loan from the seller, his name stays on the loan, but with the deed I become the owner. Now I sell the house to a non-qual and require him to refinance in 2 yrs. At this point does the house now become sold and in the name of the buyer? What if interest rates have gone up? I'm trying to follow all of this but there seems to be alot to Subject To's. I will read the link again, I have alot of learning to do. I am going to do this(REI)
and I appreciate all of the help on this site.
Thanks
Zipp
When buying Subject To, when does the seller sign the Grant Bargain & Sale Deed? Although I become the owner, how can I raise the interest rates? is this legal just because I am offering owner financing? How can I raise the value of the house 10%-20% w/o putting money into the house?Lastly, when does the non-qual buyer become owner, I don't want to finance to the buyer for the life of the loan...Do I sell the loan to the bank, or is it the buyers responsibility to obtain a loan?