Potential subject to deal.

[William Makin]

Hey so I'm new to real estate investing and because I am self employed and my wife is a teacher and we recently got a loan on a car for her we won't qualify for traditional financing. That's what the lender we talked to told us. We live in Utah where house prices are fairly expensive.

My uncle is moving out of state and looking to sell his current house.

From what I understand about subject to financing we would sign a contract stating that i will take over his existing mortgage the mortgage would stay in his name and my name would go on the title.

my questions are the following:

1. Is that correct or did I miss anything

2. What happens to the existing equity that he has in the property and would I be able to access it with a HELOC or home equity loan.

3. Does any one know a lawyer in Utah that has experience with this type of financing that could help draft a contract.

4. I know this could trigger the due on sale clause and has anyone seen that happening more since interest rates are rising and the banks could potentially get a new loan at a higher interest rate.