What happens between a seller agreeing to do a subject to loan and you purchasing the house?

[Jordan Archer]

I was wondering what I would have to do (as a buyer) as the intermediate step/steps between getting a seller to agree to do subject-to financing, and me actually owning the house? I assume there is some sort of contract that needs to be handled by a lawyer, but is there any other significant action I would need to take?

[Brian Gibbons]

The sub2 agreements I use are:

The Purchase And Sale Agreement - buying the property subject to all loans.

Seller's Due-On-Sale Acknowledgment - CYA re: Due on Sale

Quit Claim Deed To Trustee Deed Into A Land Trust - I use Land Trusts

Authorization To Release Mortgage Information - Loan is not in your name, so you need this.

Limited Power Of Attorney - helps if there is a problem with communication down the road.

Add your Trustee as additionally insured to Insurance policy

Letter declaring any remaining escrow balance to be credited towards the loan balance at the time of payoff

I hope that helps.