Selling Home on Sub-To

[Chris Allen]

Long story short, I am in a difficult situation with a property of mine and need to get rid of property. We have an offer for someone to purchase our property via Subject To. 

Anything I need to be aware of or make sure they do for my protection? This is what they said. 

This is what the buyer said.

1: We agree to sign a deed in lieu at closing. In the event we are more than 30 days late on payment the agreement becomes void. Seller retains full ownership. 

There is also a provision in the promissory note that states in the event of default, we must deliver the property back in the same or better condition from the time of purchase. 

2: We will deed the property back to the seller & execute a contract for deed. The terms remain the same, we still pay the monthly mortgage payment. The only difference is the seller remains on title until we have enough equity to refinance or sell.

3: Typically we don’t agree to balloons. The market may vary one way or the other & we don’t want to be stuck coming out of pocket on the backend as well.

If it was needed to get the deal done, the minimum balloon we could offer is 10-12 years.