Subject To Financing

[Joshua Sells]

Hi guys, I have a quick question about subject to financing. Lets say you have someone who is a couple mortgage payments behind and will lose their house soon. You come in and take on their loan in their name. They then transfer the title deed to you. My question is, where does the homeowner go? Do you they move out? If they stayed living there, how would you make any money? What if you have someone  who doesn't want to lose their house, but they just can't afford the payments? If you take on their loan for them and get the deed, they will still want to live there. Does this mean that subject to buying is only in cases where the homeowner wants to get rid of their mortgage AND their house? 

Another question...

Let say you found a single family home that is worth $150,000. Lets say that the homeowner owes a remaining balance of $85,000. Lets say that the couple living in the house got a divorce and so they both need to downsize to more affordable living. If you go in and take over their loan in their name, and get the deed, did you just successfully buy a property worth $150,000 for $85,000? And you didn't even have to have a down payment? Or do you have to pay something to the homeowner too?

Thanks Guys!