BiggerPockets

Subject to's are conditions or contingencies that have to be met in order for you are a buyer to be able to purchase the property.

For example say you're getting a new for the property your buying and you use the subject to new mortgage at a say 6% interest not to exceed 6.75%. Well if the lending institution that will finance does not meet your requirements on the financing.
Subject to's are conditions that will allow you back out of the deal if they are not met by the seller of by the parties involved in your deal.

Here is another example; subject to appraisal, which means say you got a property under contract to purchase a house for $500,000 and the property only appraises at $475,000. Well the subject to appraisal condition is trigger allowing you to A. back out of the deal or B. or back to the negotiation table and show proof to the seller that the property is not worth $500k but rather $25k less and him either has to lower the price to the appraisal price or the deal is off because one or all your conditions on the contract were trigger.

They basically allow you to back or renegotiate the pending deal. You subject to's can be the normal conditions such as subject to appraisal, subject to inspection, subject to new mortgage...etc.

Or they can be as creative as possible in order to make a deal happen in your favor.

Here is a creative subject to; subject to owner including the grand piano and vintage pool table to be included in the sale of the property. If the seller agrees to include those items behind and then changes his mind during the inspections period. You can consider backing out of the deal or renegotiating the deal.

Get the picture?

Your exit strategy can be anything. You have full control, because you own the house. I prefer to Lease Option those houses, but you could also sell with a Land Contract, provide actual owner-financing with an AITD (wrap), or sell via subject-to with your Buyer (not recommended).

It's not really a sub2 the way you described it--it'sa LC with the Seller. The DOSC is a moot issue; the bank just wants to avoid having a nonperforming asset.

LC is short for Land Contract. When using a Land Contract, you are buying without paying off the underlying loan(s), so yes, you are buying subject-to the mortgage(s), but traditionally, sub2 means to get the Deed.

Why not just get the Deed? What if the Seller gets a judgment against him in the meantime? Or child support lien? I have students in your neck of the woods, so yes, there are people grabbing the Deed in your state. We do a " kitchen table closing" and have no need for an escrow. To date, not a single lender has called the Note due (though a few have threatened with a " form letter" ).

Dude, that is EXACTLY a Subject-To transaction. There are numerous Courses available on the Topic. Granted, this discussion board has no sub2 forum, but if you go to some of the other discussion boards, you will see a lot of info on it. And I never get a Quitclaim. I always get a Warranty Deed and record it. Just because you have a LC, I don't see where you have more incentive to pay. Either you are going to pay or not.

right-on...