subject 2

I need to know, can you do “subject to” on a property that has two mortgages? Is sub. 2 only good if there’s only one mortgage payment?

Are both mortgages banks or mortgage companies. It would be harder to do sub 2 with an individual as the lein holder. In that case you may want to get approval to assume that mortgage and sub 2 on the other loan. If both are banks then I do not see a problem with sub 2 on both loans. Be sure to do them as shown in John Cash’s course. I hope he or Tim will add their views here too, I am not as qualified as they are in this field.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737

512-301-9171 home
512-587-6177 mobile


Of course you can take over both mortgages. I have done many deals that had firsts and seconds.

The same due diligence process applies to both mortgages.


Glad to meet you.

The general consensus is yes you can take a property with a first and second or a third for that matter.

Here is caution for you, if the second is a HELOC (Home Equity Line of Credit) you must have your seller close this account. Have your seller contact the HELOC lender in this case and request paperwork to close the account. Otherwise the seller could continue to borrow against this line of credit without your knowledge.

HELOC’s are fairly common today so check the sellers paperwork.

John $Cash$ Locke

I have a sub-2 the lien holder is Wells Fargo financial. Because it’s not a bank will I have a problem taking over the payments? Do I have to contact them ahead of time and explain what the seller and I are doing?


I don’t think contacting the lender is really something you want to do on a sub2 deal.

Once your dd is done and you want the deal, contact the lenders to give them the change of address and list you as an authorized person to discuss the loan details in the future.

The only type lenders that give me pause in the process are individuals and even then, you can possibly work something out.