Subject to Deals

[Christopher Schray]

Hello, my name is Chris. I am a young investor in Lehigh Valley, PA

I am currently studying about subject to deals. I talked to a lot of people and all of them said no. They all ask me this question and I am not able to answer it. The question is this.

why would the bank not call the loan if the mortgage is no longer backed by the property?

If the deed if under my name but seller is still responsible for the loan, what is the benefit for the seller and the bank?

Any answer would help.

Thank you

[Tom Gimer]

@Christopher Schray Your main question is not based in fact… the mortgage is still backed by the property. It remains a lien that can be foreclosed regardless of the fact that ownership of the land has changed.

Why would a lender not call the loan and/or foreclose under these circumstances? Because there is no guarantee that the lender would be made whole by doing so. Getting a payoff via refi or resale without the distress element may be a better course of action.