Can someone explain this to me…I just read this in an article and I’m not sure what it means.
“Use the seller’s existing financing for part of the purchase price. Buying “subject to” you only have to fund the money for the seller’s equity!”
I keep seeing people refer to buying “subject to”… help me out please
It’s like assuming someone’s mortgage without the formal assumption package/lender approval. You basically start paying the previous owner’s liability “subject to” the terms and conditions of their in-place finanacing. One day they are paying the loan and the next you are.
Caution: This DOES violate the lender’s due on sale clause (DOSC) and makes the loan subject to immediate demand to be fully due and payable. Even though this doesn’t happen often, you need to know that it legally can happen.
Keith