Subject to strategy basic questions

[Wendy Busa]

Doing a subject to may help a homeowner that faces foreclosure.

 I may have the stupidest question of the day, but I do not want to assume anything. When doing a subject to strategy, I understand the mortgage stays in the homeowners name, buyer gets the title and makes the mortgage payments. Once the property is sold does the homeowner get any of the equity or is that something that is negotiated?

For example: Mortgage is $200,000 ,Home value is $275,000, homeowner has paid down their mortgage by $100,000.

If I were to lease option the home and once the option to purchase is exercised and the home is sold, if no equity terms have been negotiated then all of the profit goes to me since I hold the title?

Since the homeowner has the mortgage is there a chance they would not want to close unless they get a portion of the profits? 

[Chris Davidson]

@Wendy Busa if you buy it subject to you own it not them, and thus they have no say on when it is sold. They would not have any right to equity from the second sale as they wouldn't be involved, and would just have the debt removed from their credit report.

Work on separating out the debt and ownership mentally as they are two different aspects. While often linked they are not the same.