Sub 2 vs. Land Contract

Hey guys…

I know some stuff already, but could someone splain the major differences between the useage of a Sub 2 purchase and a land contract purchase?

Also the pros and cons between the two.

Thanks!

Kip

Kip,

When you buy a property Subject To the existing financing, you get the deed immediately and you pay the seller’s mortgage payment in their place. The mortgage stays in the name of the seller.

A land contract (also called a contract for deed) is basically owner financing with the deed being transferred after a certain number of payments are made (usually all of them). The seller usually keeps the deed until the property is paid off.

Mike

Dead on!