So I have someone who is foreclosing on a home and has agreed to a subto deal. I was wondering after the transaction, what power do they have left? I like to plan for the worst case scenario. Afterwards, do I have complete ownership of the property? It is in my ability to make payments or not. Can they still do something like cash out refinance or do a HELOC on his own? 30 years is a long time and you never know what the seller might do. I'm afraid they might one day put a HELOC on the property, take the money and run and I will be stuck carrying more debt. Is the seller still allowed to do that since their name is on the loan?
After a subject to, does the seller still have any part in the property anymore? Can they ever do anything that may sabotage the property?
Investor · Tucson, AZ · Member since 2017 · 208 posts · 235 votes
2y
@Account Closed I concur with Billy S above assuming one thing. Make sure you actually get and record the deed through a reputable title company or attorney (depending on your state). I've seen some really messed up sub-to deals usually because someone was listening to some bad advice and using some kind of unrecorded transaction such as a trust.
@Account Closed I concur with Billy S above assuming one thing. Make sure you actually get and record the deed through a reputable title company or attorney (depending on your state). I've seen some really messed up sub-to deals usually because someone was listening to some bad advice and using some kind of unrecorded transaction such as a trust.
Do you believe empora is reputable and reliable for subto?