APPLICATION OF SUBJECT TO
Hi Everyone:
I spoke to a seller and in principle he agreed to let me assume his
mortgage. The sfh is listed and the listing
agent is opposing the idea by saying that
the seller can't do that. The owner owes
$ 42000 to his lender and I wanted to
pay him some cash for the payments he
made on the house for five years and assume the mortgage.
What should be the right course of action for me. Any guidance will be appreciated.
sayana 
Too many unanswered questions, to reply to your query, but I will try.
You could get a new loan and negotiate a price to pay off the current lender.
You could have the seller do a wrap around note and refinance paying everyone off.
You could talk to the lender bypassing the agent and see if the loan is assumable.
There are many more ways, but that should get you started,
Good Luck,
Kyle
The RE agent is opposed because he/she can't get their commision unless YOU pay it. IOW there would be very little proceeds from the sale the way it is structured now.
Give us the numbers. If you don't know what to do and this is a first you may want to either quickly read up on sub2 or get another investor involved.
Joe
Thanks everyone for the input.
Someone (another agent) told me that
all loans granted after 1988 are not
assumable. Does anyone know if that
is correct or not ?
sayana
Hi sayana,
Yes, assumable loans left us in the late 80s which opened the door to purchasing properties "Subject to" the existing mortgage.
There may still be a couple of assumable loans left, but most have been paid off or refinanced. There would probably be a lot of equity and low balances in those properties with those remaining loans.
Best of luck
John (LV)
Thanks for the input.
sayana