Subject To Deals
Does anyone know if the seller is still responsible for the existing mortgage if I buy a home from the seller (subject to the existing mortgage), sell the house to another buyer with the existing mortgage and the buyer stops making payment?
Actually you would be responsible for this situation. The person that you bought from trusted that you would take care of his/her problem - and you should. When taking subject-to, you need to be involved with that property until the existing mortgage gets paid off... That's your responsibility...
Good Luck!
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P.S. This is of course my opinion. Legally, however, I'm not sure of the laws governing this transaction. Seek out professional legal advice!
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People that don't take responsbility for the payments are the reason we occasionally fall under the scrutiny of a state attorney general.
You can't just take someone's deed and run away.
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Why is it not possible to do subto in ohio????
Kid,
Its a ploy to attempt to limit competition.
If I'm understanding your post correctly you want to assign your contract to another investor -from what I know if you assign a contract you still have a legal liability & obligation to that contract/seller if the deal goes sour-just keep your word (being that you would make his payments)to the original seller-your good credibility will goe a long way.
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Quote:
On 2005-01-17 13:47, jeff12002 wrote:
Kid,
Its a ploy to attempt to limit competition.
ROFL!!!!
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What will happen if you are able to assign the contract before the closing with another investor. Your new buyer will have the right to buy the property sub2 because that is the way the contract is written. Your buyer has just cashed you out of the deal by given you your requested fee. And if assigned before the closing your new buyer would be the one with their name on title not you. So you would not be responsible for the gaurantee which goes with Sub2.