Strategies of buying "subject to"

[Account Closed]

I'm trying to wrap my head around when it make sense to buy a property "subject to".  What are the typical exit strategies after buying subject to?  Let's say a seller won't accept 50K on a 100K property.  If they only owe 60K, do you offer them a subject to deal for 60K?  Seems like if 60K cash doesn't work for you, then 60K subject to won't either.  

Or, do you not offer a higher purchase price if doing subject to?  If so, then why would the seller ever agree to it for the same price?

I'm obviously missing something here because I know it's a popular way of buying.

Also, who makes the payments to the bank when it's a subject to deal?

[Bill Gulley]

Sub-To Offers.

Watch out, if the seller gets an equity payment and the buyer pays an existing note, you have a blended mortgage, that gets into advanced issues, use a second and simply state the total payment due.

Your offer price - underlying mortgage amount that may be taken Subject-to = equity due the seller.

An amount you can assume is an amount you don't have to finance some place else or pay in cash!

The amount you might assume payment on has nothing to do with the value of the property, it's potential value, or your offer unless you don't want to pay what is owing or less than what is owed. :)