Subject To Ask-Hole

[Chip Martin]

BP Creative Finance Community,

I, like I imagine many of you, have fallen into the deep, dark hole of creative financing and subject to after reading Pace Morby's Wealth Without Cash. Specifically for subto, I understand the concept, when it's appropriate, and the pros and cons for the buyer and seller, but I don't understand some of the nuances, so, at the risk of being an ask-hole, I have a few questions.

1. In order for the buyer to take over the payments for the seller, the seller will need to give the buyer access to their mortgage payment portal account. After doing this, does the buyer need to do anything to prevent the seller from logging into the account, or will the seller typically continue to have access so they can monitor the payment history? If the seller continues to have access, what is stopping the seller from updating the login information so the buyer is unable to log into the account, other than the threat of payments not being made, their credit being impacted, and the lender starting the foreclosure process? I understand those reasons likely provide enough motivation, just curious as to how the portal access portion works.

2. If the loan remains in the seller's name, wouldn't all tax documents (e.g., 1098 Mortgage Interest Statement) from the lender reflect the seller's name? If so, does that impact the buyer's ability to realize tax benefits on the property?

Thanks!

Chip

[Leigh Scott]

From my understanding the serving company makes the payments and the original owner (ie the seller) receives a statement of payment and should be able to view their loan portal to confirm payments are made.  The buyer doesn't need access once the serving company has set up reoccuring payments.