How to complete a Subject-to?

[Ron Buffano]

Hi,

I’ve never completed a Subject-to, but I would like to. What is the process once the property owner and I have agreed on the terms? What paperwork is required?

[Account Closed]

Originally posted by @Ron Buffano:

Hi,

I’ve never completed a Subject-to, but I would like to. What is the process once the property owner and I have agreed on the terms? What paperwork is required?

There are 7 (seven) ways to do a Subject To. The first six will get you into trouble. Don't do any combination of these things when doing Subject Tos: 1. don't do a "kitchen" table closing 2. don't use a Quit Claim deed 3. don't ask the bank for permission 4. don't do one without a title report 5. don't write up the paperwork yourself 6. don't do one unless everybody who has an interest in the property is on board 7. don't ever miss a payment 8. don't do one if the property is in bankruptcy 9. don't do one if you don't know what you're going to do with the property 10. don't do it in a trust 11. don't try to hide what you're doing 12. don't buy unless you know all of the numbers 13. don't buy unless you have a solution for the "Due on Sale" clause 14. don't do one if the loan is underwater 15. don't do one if it's with a "vulnerable" group (elderly, handicapped, minority, etc) 16. don't do one if it's still in probate 17. don't do one if it's a reverse mortgage 18. don't one one if it's a FHA loan (unless you really, really know what you're doing) 19. don't do one if the seller wants to buy a house in the future 20. don't do one if it's in forbearance 21. don't do one if there is a 2nd loan or lien 22. don't do one if the other owner is in jail or "location unknown" 23. don't "not" record the warranty deed. 24. don't do it at all without disclosures. There is more, but that is what comes to mind at the moment . . .

So, Just a couple of warnings of what not to do. It works really, really well when you do them "right".