High Equity SUBJECT TO...Is it possible?

[Francisco Medina]

Hello, Everyone. 

I have been researching SUBJECT TO, and what Ive notice is that most subject to deals are done with properties that have little or no equity. 

Is SUBJECT TO possible with high equity properties, and how would that be structured? Pay off the default amount to bring the loan current, and also negotiate more cash for the sellers equity?? I realize that it depends on the condition of the house.

I was searching a Pre foreclosure (NOD) list, and found a house. I would think someone in this position would put it on the market, but they have not. Maybe it needs major work??

02/03/2021 NOD

200k-ArV 

72k - Mortgage balance

$14k -Default amount

$1,000 - Approximate monthly payment (mortgage, tax)

 Also, is SUBJECT TO still possible when the NOTICE OF TRUSTEE SALE has been filed??

Thanks In advance for the insights.

[Brett Goldsmith]

subject to's are preferable when the property has equity. It just needs to be done properly as additional liabilities are taken on when a subject to takes place due to keeping the borrowers loan in place. 

Yes, you transfer title, cash out homeowner for a portion of their equity through the sale, and reinstate the loan in your example. This should be done through escrow and get title insurance.

Many homeowners in foreclosure don't want to sell, they want to keep.