Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. 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 on . Most recent reply

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...