All Forum Posts by: Godsheritage Adeoye

@Godsheritage Adeoye when you purchase a property "subject to" the existing mortgage you will then make payments to that mortgage company.  The closest analogy I can make here is when someone "takes over payments" on a vehicle.  That new owner then makes the payments to the lender even though the loan stays in that previous owners name.  Same here.  You make the payments to the lender.

Oh, and just in case, there are more items to know about when considering a "sub to" transaction but this is just a comment on the payment aspect. 

Hope that makes sense.

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@Godsheritage Adeoye And for anyone else considering this... in Baltimore City you need a current lien certificate to record a deed. That certificate would show open taxes, water, housing violations, citations, condemnations, receiverships, construction liens and other municipal liens. Unless those items are all satisfied (except for housing violations and some non-monetary liens which follow the property), the department of finance will not allow the deed to pass through to the next stop in the recording process.

So even if you wanted to dump a property that was totally upside down with liens to someone who was willing to take it from you, you can't do it. It's insane. The property either has to go through the tax sale process, receivership, or some other program (donation, etc.) to have the liens abated. 

What that lien cert would not show you, however, are open mortgages, judgment liens, tax liens, other non-municipal liens, pending litigation, and the like. So if I was dealing with a seller who was insisting on handling the transfer this way, I would be wondering what the seller is trying to hide... and I would figure it out.

 Reach out to @Tom Gimer at Eastern Title 

Unless you are a seasoned real estate investor with professional title searching skills, I wouldn't do this. There can be some liens that you may not be aware of. Using escrow company & title insurance will protect you from an unwanted surprise.

Hi there! Glad to have you as a part of this awesome community and congratulations on your investment! 

-Julio