Subject To - What Does The Seller Do?

[Nathan Samuelson]

Good evening everyone,

I looked around on a couple of threads posted on this site, but didn't quite get the answer I was looking for, so I figured I'd just ask here! (Sorry if this has been asked a thousand times, which I'm sure it has)...

My question is, when trying to convince a seller to do a "subject to" deal and the seller asks "Where am I going to live after you take the deed to the house?" - How do I answer that, or what can I say to convince them it's a good deal? I know Subject To deals can save the sellers credit, and that in itself is good and often a selling point...but where does the seller live afterwords? Do they just normally find a place to live that's cheaper? Like moving into a mobile home or apartment? I have heard of buyers offering 1-2 thousand for moving costs, as a sort of incentive (and / or also paying off any liens against the title if not too high).

If the seller accepts a Subject To, they must have had some problems paying their mortgage, so how can they expect to take out another loan, or come up with any sort of money, if they needed it in the first place?

I guess in my head right now, it doesn't seem logical...."Let me take your house because you have no money and can't pay your bills...now sign over your house to me. Now you have no house AND no money - good luck."

Hopefully this makes sense. Thank you all in advance for responding!