DTI ratio when the mortgage is serviced

[Syed Quadri]

Just finished listening to BP episode # 527, in which Pace Morby talks about how lenders could wipe out people’s debt-to-income ratio on their previous mortgage if it was serviced. 

I'm wondering if anybody here has any experience with this strategy that they can share. 

[Wayne Brooks]

@Syed Quadri Yes, that common for the seller in a sub2.  But, Why would you ever want to sell on a sub2? It leaves you with a lot of risk.  At least sell it as a wrap mortgage, so you have some recourse (foreclosure) if the buyer goes south.