Defaulting on a subject to

[John Mclaren]

Hi

I am considering a subject 2 property deal and friend suggested coming here to put my concerns out there.

If I default on a subject to deal what will happen? Will the 'seller' be able to take back the property?

Thanks

John

[Jon Holdman]

No, the seller cannot take the house back with a subject to transaction.   If they did a wrap mortgage, they would have a security interest and would have the right to foreclose.  If you don't make the payments, the lender will foreclose, take the house from you (causing you to lose any money you've invested) and wreck the seller's credit.  If you are not absolutely, positively sure you can make the payments, don't do a deal like this.  Period.