Subject To

[Tim Farrell]

This is a morbid question, but.... You lock up a property using Subject To. You have the title placed in your name and you are making mortgage payments to the bank while the loan is still in the name of the original seller. What happens to the mortgage if the original seller dies prior the mortgage being paid off? The home is already in my name but what happens to the loan?

Thanks

[Bill Gulley]

Good question. Depends on how you do thing, I did most with notice and coordinating things, the response as to the DOS was probably more than 90% initially saying they would call it due and after I did some negotiations and talking sense into lenders 90% were allowed to continue as agreed. That leaves 10% to cough up money to. The question then becomes, how good are you? Do you really understand financing risks or are you just blowing smoke? Do you really understand the bank's position or are you a wheeler-dealer type trying to talk crap? Can you really back up your deal and guarantee to that lender that you can step in and take them out anytime or again. are you just blowing smoke?

I just wiped out about 6 paragraphs, decided it was too much of a rant against "investors" and the self proclaimed finance experts on thin site, or internet

Let's put it this way, if 90% of the "investors" who do installment deals tried to convince me as a banker to let their deal fly, I'd lower the hammer on at least 75% of them. Those that I allowed to do a deal are with those that I can see that have lending experience in institutional settings, or that have funds to pull a deal out, that actually know what they are doing.......those are very few and far between. IMO, only 5% of the members on this site have the experience, availability to money, knowledge and sophistication in doing these installment contracts that will win over an institutional lender.

Most all are to lazy to learn, looking for guru crap and whiz-bang deals.

I spent 20+ years fixing crap financing dreamed up by people who thought they knew what they were doing, still do, these folks are a real problem and much of the reason for the new laws.

There` are only about 10 people on this entire site that can even speak to financing issues who actually get it,, the rest really need to be ignored, I'll leave it to you to figure out who those 10 or so are. Hint: none, are real popular posters. Yes, I don't consider myself as "popular". :)