Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 3 years ago,

User Stats

83
Posts
35
Votes
Lior Golan
  • Investor
  • Tel Aviv, Israel
35
Votes |
83
Posts

Few missing pieces in Subject to deal

Lior Golan
  • Investor
  • Tel Aviv, Israel
Posted

Hey,

I am starting to learn now the all subject to thing, and I learned: 

* that when I am initiating a Subject to deal, what is being done is that the deed and the mortgage payments are transferred to me, so I would have full control on the property. But the mortgage STAYS in the sellers name.

* that if the property would foreclosed, they will come to me and not him.

* about the due on sale clause, that if I am paying constantly every month, the bank typically will not initiate the due on sale clause. Basically because the bank wants money and not real estate. 

So few questions:

* What that mean stays in his name? Like what the consequences for that? Let’s say I would have a seller that I am explaining him how this process goes and also mentioning that only the mortgage STAYS in his name. is there any risk for him on that?
* About that the foreclosing the bank chase me and not the seller, is this because I owe the deed or because I’m paying the mortgage?
* What’s the difference between the mortgage stays on the sellers name by me pruning the mortgage (if I would buy this house with a typical mortgage)?

* if the due on sale clause does initiated and the required the money back in full, to which they go? To me or the seller?

* any other notes that you think I should know?


thank you

Loading replies...