Help!
We currently reside in Indianapolis, my husband has accepted a position in Ohio and has been living there for almost 2 months now. I am in Indy trying to sell the house. I spoke with a gentleman who wants to do a subject to with us. Now we have a VA loan at present and when I asked our Mortgage comapany they said that we would have to do and assumption. We are willing to pay down the loan by $3000 before we would do an assumption. So basically the assumer would be assuming a loan that is about $5000 (maybe more I'm being conservative) less than what the house is worth. He hasn't said he was against it, but he did say that it would be the same as him just getting his own finanacing. (our loan is at 6%) Is this completely out of line as far as opportunities go for real estate investors? The fact that he was if'y during our conversation makes me think that perhaps he couldn't swing the financing and that he may not be as reputable as I had thought. Any thoughts? Any suggestions? I'm really understanding that an investor has to be able to make money or it's not worth it to them. Thanks for any help you all can give! 
Jewels,
It is usually not a matter of being reputable, sometimes it is carrying a loan when there is very little equity in the property. Unfortunetly subject to is for motivated sellers who can not unload the property any other way. At this point you might have other options which might make it not the best option for you.
On the other hand maybe get some type of escrow agreement (X number of months of money he puts in escrow) and a contract that will re-deed the property back to you if he does not pay it.
Jewels,
Glad to meet you.
Basically you are upside down in your property, paying down the mortgage by $3K would be a waste of money as it will not change the situation enough to help you.
I have been doing Subject To deals for many years and have helped alot of folks in the situation you find yourself. As in any profession including creative real estate investing there are investors who know how to get the job done and those that don't.
There are certain precautions you can take when contemplating a Subject To deal.
1. Make sure a licensed and bonded Loan Servicing Company is used where the payments are made to the Loan Servicing Company (LSC) from the investor and then his buyer. The LSC will make the payments to your lender. You can check with the LSC to make sure the payments are being made on time.
2. The investor should give you some money for your equity even if it is a small amount which in your case it would be.
3. Ask the investor for references of people he has helped by purchasing their property. I have some Subject To students who have not done their first deal yet, but they are trained to get the job done and make it a win/win for everyone this makes a big difference. So if they are $Cash$ trained you can be assured they know what they are doing.
4. Although I do not promise a seller when the loan will come out of their name, with a good system put in place the normal time this happens is two years. We work with our buyers to do every thing possible to make this happen.
5. Here is what Subject To investing means the investor takes title to the property, the trust deed is in the sellers name until the property is re-financed. This way the seller can offer financing to a new buyer.
It does not mean that the buyer has bad credit, there are many reasons a buyer may not qualify at the present time, new in town, change of occupations etc., but I have found that around after two years the buyer can get financed.
5. You will still be able to purchase another property even if the trust deed is still in your name. You can show your new lender a HUD-1 this is a govenment form, it even contains a Line Item 'Subject To".
So just do a little do diligence with what the investor can do for you.
John $Cash$ Locke
Thanks for the info. Although I have contacted 2 different lenders in Ohio and they are both telling me that it will be impossible for us to qualify for a new mortgage or buy a home until this property is sold. I told them about the HUD-1 and they told me that it doesn't matter. A subject to contract is not enough for them to overlook it on the new mortgage application. Just want to give you the info that I've found, I'm sure none of you would want to mis-inform your buyers.
Jewels
Jewels,
You are talking to the wrong people, you need to talk to a Mortgage Broker, these people know how to get the job done.
You are thinking conventionally and so are the people you are talking to. A good Mortgage Broker will understand what you are trying to do and get the job done for you, if they are worth their salt.
I have seen it done a few hundred times for my sellers, so you should not be any different.
John $Cash$ Locke
I'm not sure who your RI is, I am sure non of this has to be this difficult. I'm guessing he is not "Locke's" trained.
Bokers use a lease to offset D. T. R. for new loans.
Evreything posted on this forum is correct. There is no misleading or any substitute for experiance. John has life time training for his students offering not only hundreds of deals but years of training students. If he hasent heard of it , It doesn't exist. No one has tried to sell anyone anything here, or even knows your RI.