Understanding Subject to/Attorneys near Levittown, PA

[Colin Roberts]

Hi everyone, I am a newer investor looking to understand the process of setting up a subject to deal. Ive read some BiggerPockets forums on this and I do understand that the bank has the right to proceed with the due on sale clause but not the obligation to do so. I also understand that there is not a minimum or maximum amount of time the bank has to take action on the due on sale clause if they find out. It was also mentioned in one of the forums that a good strategy to avoid the due on sale clause is to contact the lender and explain the intentions of the transaction that you plan to make with the seller. Im not sure if this is completely right because as I familiarize myself with this subject, it seems as though that the due on sale clause could be implemented more in certain times, such as when the interest rates are rising. From my understanding the banks in this scenario would prefer to not have someone take over someone else's payments and instead would rather foreclose and be able to process another mortgage at the higher interest rate, which in theory would cause an environment that would hold more potential for the banks to want to do this. I wanted to relay what I thought to be true about what I read and see if this is correct. I also wanted to see how this information could be applied to further lower the risks of having the clause be activated. I know this is a lot of information but I wanted to start a platform to clear up this topic as much as it can be understood for everyone on BiggerPockets. Another question I wanted to ask is about real estate attorneys and how you go about finding attorneys that can do these types of deals efficiently and help you create a contract that will cover all aspects of this type of deal so that you and the seller are covered. I am in the Levittown area which is close to Philadelphia and was wondering if anyone knew of attorneys in that area that could help me or anyone with this kind of deal. To close I wanted to ask if maneuvering through this type of deal successfully is the simple matter of writing up a contract with an attorney that knows subject to, and also to see if speed is important with the terms and length of time you(the buyer) decide to continue to pay the sellers mortgage before you refinance them completely out of the deal. Another question to add to the refinance process is how do you go about getting a bank to give you a loan to pay off an existing mortgage. I also wanted to know what makes a good subject to deal and what to look for so you know(as the investor)how and when you can use this strategy to bring value to not just you, but the seller. Any information would be appreciated and I hope this discussion brings value to everyone here on bigger pockets. thank you!