Question about "Subject To's"

[Nathaniel T. Landrum]

I've never bought a Subject To before, so forgive me if this question is elementary. If I were to buy a house subject to existing financing, transferred the deed to my name, leaving mortgage in seller's name, let's say a few years down the road, the seller goes through bankruptcy. Would I lose the house if I couldn't sell in time?

[Jeff Rappaport]

@Nathaniel T. Landrum, I have done about 60 or more subject to deals over the years.  I am not an attorney so I would take this with a grain of salt and consult one in your area to verify what I am saying is true.  By taking a house subject to you are now the owner of the property.  You own the asset.  In some way, you have agreed to buy the property with the debt that already exists on it.  If the seller files BK the property is no longer an asset of his.  It should not affect your ownership in any way!  The debt is still in the seller's name but attached to the property.  You should be making payments on that debt.  There is nothing for the BK court to come after.  No asset.  The debt is already being paid.  Consult with an attorney to verify what I am saying is true but I don't think you have anything to worry about.