New laws, could be bad for us!

I heard recently from a reputable real estate attorney that some new legislation is being passed in the south (Texas, and North carolina for starters) which would make it difficult for “subject to” deals to work anymore. It would basically force the seller to ask permission from their lender to allow an investor to acquire the property “subject to” and leave the mortgage in the sellers name. I am assuming that if this happens, not too many banks will sign off on that…eventhough the investor will most likely continue making the mortgage payment. I am wondering if this is going to be the end of the road for “subject to” real estate investors.


Although the new legislation in Texas is bad. It is no means the end of creative investing using the subject to technique.

Hope that helps,