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Updated over 2 years ago,

User Stats

20
Posts
17
Votes
Aaron Duthie
  • Investor
  • Frisco, TX
17
Votes |
20
Posts

Unique Subject-To Duplex scenario - legal ramifications?

Aaron Duthie
  • Investor
  • Frisco, TX
Posted

I've scoured the forums and haven't found one that addresses my unique situation below. Would love some input from a legal perspective..

Scenario: I own a full duplex. I live in unit A and rent out unit B. Each unit has its own tax ID. My FHA Mortgage covers the full duplex (unit A and B), including taxes and insurance collected in Escrow monthly.

I am considering selling Unit B Subject To to the current tenant, having them take over the unit B deed along with the whole mortgage (which covers unit A and B + all taxes/insurance).

Question: Beyond the typical Subject To sale concerns, are there any unique restrictions or ramifications I should be aware of if I move forward in this situation? 

Thanks BP Community!

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