Would you pay off a 2nd mortgage on subject to deal?

[Sean Dezoysa]

Hey guys; when you take a deal subject to, do you offer to pay the 2nd also? Most 2nd are taken to finance personal expenses (cars, vacations etc) so I'm thinking of offering to pay only the 1st, but I'd like to hear what other investors have to say.

[Account Closed]

All liens and title issues have to be dealt with in a sub2 deal. If you get the deed, you take a property subject-2 everything on title. All mortgage, property taxes, IRS liens, HOA fees and liens, utility liens, child support judgments, credit card judgments......shall I go on? :) So you offer and negotiate a deal that works for your purchase price and exit strategy. That may mean negotiating discounted pay-offs with creditors, it may mean the seller bringing cash to the deal, it may mean that the deal isn't worth doing. Be sure to study up on all the things that can happen in a sub2. Make sure you understand due on sale clauses and have a back-up plan if a lender calls a loan due. Lots of fun research in your future!