Sub 2 on an REO?

General Real Estate Investing
1

He all.

    There are a few REO's in my town. Some don't need a lot of work. When it comes to Sub2, how does it usually work? If I were to put in an offer with sub 2 financing, would the bank holding the REO be inclined to finance it? If so, would I usually have to put money down as usual or take over payments? Thanx
2

thats not a sub 2 that is a purchase money loan…

3

Sub2 is not a strategy you can use on an REO. The bank will sometime allow you to finance through them, but it’s a typical loan that you will have to qualify for and come up with a downpayment depending on the terms.

4

Thanx. That’s what I thought.

5

phlemboy,

After all the answers you received, I suspect you don’t understand why you can’t do SubTo on an REO.

It’s really simple. Because the property is an REO, the lender owns the property free and clear. There is no loan to take “Subject To”

6

I think it was more of a lack of knowledge of just what the sub2 is. I thought it might be almost like a financing continigency but I really didn’t know. Somehow I knew I didn’t have it right. Thanx everyone.