Sub2 - Please Explain
Hi all..
Can someone please give me a little primer on Sub2 financing.. I'm just starting off and trying to get into REI.. Can you give me an example situation where Sub2 financing is most likely to be used..
Or if you can direct me to a site with this information that would be great!
Thanks!!
Sub2 can be used in just about any situation. In a nutshell when you purchase a property "sub2" you are purchasing a property subject to an existing mortgage (just like you are buying a property subject to a utility easment, for example). You also agree to take over the payments for the mortgage (obviously or you will lose the house!). The deed transfers into your name but the mortgage stays in the name of the old homeowner.
denisl,
Glad to meet you.
This should give you a better understanding.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=146
John $Cash$ Locke
Thanks guys for the explanation. So, now I have a question..
Why would a seller agree to a subject to purchase? I can see where in a buyers market this would work but why would a seller in today's market agree to this type of arrangement? What type of seller would typically agree to this?
I ask because I know it's being done and I too would like to find such opportunities..
denisl,
Divorce, just wants out, transferred, behind in payments, two mortgage payments, realtor could not sell, FSBO could not sell, needs cash fast, doesn't want the Sheriff knocking on his door to toss him in the street or the seller likes the way you smile.
John $Cash$ Locke
Who knows!?
I did two sub to deals last month (my first 2 deals ever) and I live in a very hot sellers market.
After those 2 deals I stopped asking why and just do it.
This site is amazing.. I'm already thinking of 5 different ways to purchase a house I'm looking out...
In the guru course I got I says to offer multiple offers.. Do you guys/gals do this? Multiple offers?