securing new loan w/ subject-to

General Real Estate Investing
1

This has probably been beat up before… but this topic is becoming like a ‘splinter in my mind driving me mad.’ lol

Anyways… I’ve had the objection of the Seller being concerned about getting a new loan if he sells subject-to. I have heard that I can give him or his lender a contract for deed or land contract which is basically a purchase agreement where you pay in installments. On those agreements though… we’re paying the Seller… not the lender… and there’s no way I’m going to have a private lender or myself write a check out to the Seller and hope he makes the payments. See the discrepancy? Is it illegal to put on the agreement that I’m making the Seller payments but I’m really making payments to the lender? Or could I just make the payments to the Seller made out to the Lender?

Haha… anyone who has been through this please help. Thanks

2

For what it is worth, I think that if you are not making payments to the seller, then you should not put that in writing.

I don’t see a problem with mailing a check to the seller that is made out to the lender.

Just my opinion.

3

yeah that’s cool with me too… i was referring to making it out to THEM not the lender… i wouldn’t do THAT.

i don’t know… i’ve heard you could just send in a lease to the lender if it’s leased out so they know it’s getting handled. but what if you ain’t got a tenant yet?

i’ve also heard just sending the lender a land contract to show the debtratio is a wash.

i’ve also heard sending the lender a hud statement.

who knows?

4

cant you use a land trust and then you can send the payments directly to the bank yourself?

5

yeah… you can.

what i’m talking about is if the Seller is concerned about getting a new loan from a different lender if you buy it subject-to.

it doesn’t really matter because houses are a plague to banks but the sellers don’t know that. i just want to know a few ways to ease their fears if they want to get a new loan for a new house. :slight_smile: