Subject-to Refinance Options

[Ellis Moye]

Hey Everyone, I wanted to see if anybody had insight on my current situation. I have a completed flip that has been slow to sell and recently another investor approached me looking to buy the property sub-to. I explained that at the moment this would not be possible because the property is in a hard money loan. The interested buyer said they would be happy to wait for me to refinance and then assume the long term debt. I am open to this arrangement however I want to make sure I refinance with a lender who is ok with the mortgage being assumed. I would hate to put myself in a position to get the note called or be found in default etc. I am curious if anybody can recommend a lender who would allow me to go through with the subject-to deal right after the refinance. Any insight on the situation or any lender/broker recommendations would be appreciated. Thank you!

[Nicholas L.]

@Ellis Moye

we really don't know a lot about this situation since there aren't many details in your post... but i don't think this makes any sense for anyone involved here...

if it's a flip that's not selling, refinancing may not solve your problem and allow you to pay back the HML in full

and typically a sub to buyer wants a low interest rate... and if you refinance now you won't be getting a low interest rate, you'll just be getting whatever the market offers.

and finally.... the vast majority of loans are NOT assumable.  that is not what sub to is.  sub to is simply taking over payments, it is not assuming the loan.

hope that helps