Is Using Subject To Dead for Buying Properties

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Ok, a bit of an overstatement. But, it is wayyyyyyyyyyyy down & over simplified. The question is Why?

1. Foreclosures are at an almost all time low. Most Subject To's are with distressed sellers. If people aren't feeling pressured, they don't budge. Moving is an emotionally draining event for most people. 

2. Over 18,000,000 people refinanced into lower interest rates, making it easier to make their payments and less likely to feel stressed. 

3. With very low interest rates on thier current mortgage, most people won't want to give up the low payment and are afraid of the payment shock of borrowing the same amount of money at a higher rate to get into a new house. 

4. Lending has tightened up, so fewer people can get a loan or find a property to move to.

5.  Guru's & Mentors, for a small fee of $10,000 to $20,000 ;-) are teaching people the upside of Subject To. When it's the right market, with enough funding & knowledge, it works. But forgetting to mention the downsides and when it's the wrong market, it's a disaster. 

And they don't mention the investigations by the state and feds when you make a mistake in the process. Why would they mention that? They won't. It's more profitable to convince tons of people to shell out $10,000 to $20,000 than to actually do Subject Tos. If it wasy easy, everybody would be doing them. ;-)

The market is flooded with "New Subject To wannabes" and with all of the enthusiasm, it's like the Tulip Mainia crash. Lots of money spent, lots of time wasted, lots of people hurt in the process.

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Quote from @Account Closed:

Agreed, a lot of people selling "BUILD MILLION DOLLAR PORTFOLIO WITH $0 DOWN" (they forget to mention the real down payment is their $10,000 mentorship program, lol)... But what do you think of subject 2 specifically applied to probate cases? The mortgage is in the name of the deceased, so this mitigates some of the risk associated, though it remains a very complicated process... thoughts?

I've done Subject To with Probate. Obviously it wasn't the deceased I had the agreement with. I waited until the property cleared probate and worked with the executor/personal representative. There are a couple of differences you have to take into account, but it can be navigated. Whatever you do though, never miss a payment.