Reinstating loan, out my name on grant deed

[Sarah Jukes]

Sorry typo can’t edit, should say ‘put name on grant deed’

Working with a Realtor specializing in Preforeclosures (she does all the door knocking, phoning, negotiating).

Going to see a house today. Owner has 3 days left to reinstate his loan. Realtor says I can pay the $30,000 to reinstate & transfer house over to me in the Grant Deed.

Then we pay his mortgage payments until we sell the house... is this even legal? Or do we get a new loan and pay off his one? currently applying for non Qualifying loans. (Self employed general contractor, income low on tax returns, but own house worth $1.2 million, no debt)

Would love other opinions on this, not just our realtor’s. Goal is to flip houses to build up larger cash deposits each time. The market here is crazy, homes sell fast, but getting good deal is tough.(Central coastal CA)

Thanks.

[Ron S.]

Originally posted by @John Lambert:

I'm just curious, has anyone here ever purchased a property Subject To where the loan has been called due as a result?

I've called notes where the borrower has done a subject to. They often tell me I can't do that because their agent told them a subject to was fine or, their attorney told them a subject to was fine or their neighbor, barista, etc., all told them it was fine. Then they get my NOD in the mail and the light goes on that it's not fine.

Some lenders don't enforce it and, some lenders do. Some people get away with cheating on their taxes too but that doesn't mean we should.

Subject to is fine if you have an exit strategy and, can get out of it before the lender calls the note, just in case.