Investing question about Sub2...

General Real Estate Investing
1

Hi,
I have read alot of articals and read a few how to buy pre-forclosure books however, there are a few things I am not grasping. The main one is this: I find a good deal and take the loan Subject to. I have owner deed me the property( after all my due diligence) . (I want to be the retailer not the dealer here fyi) I pay the amount that will satisfy geting the loan out of forclosure, I make improvments and hire a realestate agent, and place the property on the market. Now the question:

Can I sell the property to someone with a conventional morgage aproval? If I can how is my buyers morgage company going to pay the funds if the morgage is still in the party I took subject to? I missed something I think? ???

Thank you for your time
Jeff, Ohio

2

The buyer’s lender will pay off the existing loan and you’ll get the difference between that loan balance and how much you sold the property for (minus other expenses) in the form of a check at closing.

3

Thank you for the responce!

4

Another thing you need to do when taking a property subject-to.

  1. Get an “Authorization letter” signed by the seller that gives you permission to talk to the lender.

When it comes time to sell you don’t want to have to track down the person who sold it to you so you can get payoff information on the loan.