The term subject to from this point is “subject to existing mortgage”, meaning I am purchasing the house while leaving the loan in place. I am not 100% sure about this, but I believe it is lender/lawyer term and the term appears on the HUD1 settlement statement as well. It is like buying on owner financing where you are paying the seller’s bank directly.
I just starting reading a book written by Wendy Patton on subject 2 and lease options. I am not even 50 pages in and already I feel like I could go out and do one. These seem like really sweet strategies to use right now due to the fact there are a ton of people that all of a sudden cannot qualify for mortgages but maybe have been saving for the past year to buy.
Thanks. I am going to continue to study and try to learn as much as possible. I am a local realtor, but am much more interested in investing than I am in “selling” real estate. I have started doing short sales and I feel like there ways I could be helping some of these people out and making money at the same time and I am trying to learn more to do that.
Ok, So I have read both of John Cash Locke’s articles on Subject to, where can I find more? I cannot seem to find anything else on here about Subject to by JCL. I joined his website but It wont let me in still until someone verify’s my email…any suggestions?
You want to buy Subject To, but you never want to sell Subject To. If there are a ton of people with downpayments who can’t qualify for a loan, sell on lease option or on Contract for Deed so you retain control of the deed.