Subject to: risk vs reward?

[Jeff B.]

Subject to: risk vs reward?

The Contract of Sale, The All Inclusive Wrap, The “Subject To” -- innovative means to begin REI.

As Tom Standen Says:

It could even be argued that selling a property “Subject To” is really not a very smart thing to do.  Just think, you have transferred your ownership interest in the property to someone else (usually someone you do not know); however, you have remained responsible for the underlying loan on the property. If they don’t make the payments, guess whose credit is ruined? You’re right, yours!

No, It’s not a crime.

No, writing a sale on a Wrap Around, a Contract or with a Subject To is not a crime. But the buyer needs to understand, and the seller needs to disclose in the selling agreement, that there is, or may be, a right on the part of the lender to “call” the note due if the property is sold without express written consent of the lender.

See the other risks at this site

[I am not associated with Mr Standen in any way whatsoever]