Anybody know where I can find a Purchase Agreement with legal wording to handle a “subject-to” situation? Thanks!
you might have to buy one of those cheap courses off of the internet, because they will give you background info on the papers and show you how to use them properly with your attorney.
Just modify it yourself… “subject to existing mortgage at an approximate principle balance of ______________ and interest rate of _____ with current Mortgagee/Lender as ___________________ with a loan number of ___________.”
Change it to fit two or more mortgages. Have fun.
Are you talking about modifying a standard purchase agreement with your subject to statement?
If you could provide more details that would be great. Thanks
Yup… it’s really that simple. All the stuff in the purchase contract that has to do with loan approval and conventional financing just cross out or delete.
A purchase contract is just a meeting of the minds… one good reason to get one in sub2 deals is so the seller can’t come back later and say you owe them money.
You should probably get a disclosure signed too saying that you have no intentions of assuming said loan and no guarantees of paying it off even if the loan gets called due.
whats all this talk of land trusts then? any fool can put that language into a purchase contract. i thought there were complexities such as how to handle the property insurance and setting up a land trust. is it really as simple as putting “this purchase is subject to mortgage loan remaining in seller’s name”?
That clause is just for the mortgage. You don’t have to mention anything about land trusts in a purchase contract. All the other clauses and contingencies you’ll have to work out with the seller just like your buying a house to live in. Who pays closing costs etc?
If you put it in a land trust… that is just one way of holding title. When your talking about purchase contracts… I’m assuming that your getting a purchase contract and then closing with an attorney or escrow agent.
If you want to do a table top closing then yeah… warranty deed, purchase contract, authorization etc.