Can anyone explain how “Subject to” is used with Short Sales? I see there are several people negotiating a short on the second and assuming the 1st. Does anyone try a loan modification on the first if the property is still underwater after the 2nd is shorted?
How are “Subject to” deals transferred to the buyer? Do you have to pay all regular transfer and recording fees that you would on a regular property sale? Does the “Subject to” transaction have to be approved by and/or disclosed to the seller’s lender(s)?
Please include other information that might be helpful for a newbie.
Thank you!
You should contact an attorney in the state that you plan to invest in.
On to your question, you could loan mod the first and short the second as long as the second doesn’t care how you deal with the first. Getting a deed on a short sale is worthless unless you can create a deal.
As far as paying transfer fees you need to contact your county to determine that answer. Get familiar with your county codes so you can work within the law. Also a subject is transferred to the buyer by a deed. The deed is the title to the property and whoever has the deed owns the property.
Hope this helps.
John Locke wrote a great course on Subject to investing that you may want to consider.