Duplex Purchase Subject-To?

[Dan Seavey]

I am looking into purchasing a Duplex that the current asking price is $199,000, I have made an offer of $175,00 with 100% owner financing @ 5% with a 5-year balloon. They entertained the idea, but cannot because the seller has an outstanding mortgage, so that will not work. Is a subject-to purchase the best option in this scenario if I am trying to get into this deal with no money down and avoid a conventional bank loan? The sellers are very motivated but cannot hold the entire note. They currently owe $75,000 on the property.

The next question is - If I were to offer $75,000 and have a promissory note drafted for the remaining $100,000, will I be able to get a conventional mortgage on the $75,000 and assume the title/deed?

[Account Closed]

Not sure exactly what you are trying to do. You could have the seller deed you the property, taking it subject to the $75K loan. You leave it in place and take over the payments. And then have the sellers carry back $100K in second position. So you are making one payment to the original lender and one to the sellers.