It is hard to find info on "subject to" mortgages, i was wondering what this type of assumable was about. I heard that the "promissory note" was kept in the owner's name, what does that mean?
Im assuming your talking about taking over the payments subject to the exisiting loan.so let me break it down to you....
1.sales contract with subject to existing loan clause on it.
2.create a land trust conveying the property into the trust and your company or good friend as trustee.
3.have seller sign a warranty deed to trustee showing seller still holds 100% beneficial interest.
4.have seller sign an assignment of beneficial interest (ABI) naming you the sole beneficiary to the landtrust.
5.you would file the "warranty deed" at the county clerks office but hold on to the "ABI" for future use when selling the property DO NOT FILE THE (ABI)!
6.get a seperate policy and pay additional to your sellers insurance if theirs in escrowed in the monthly payment or get a (POA) and call the existing ins co and have your name added to the policy.
7.get charge of address notices to the mortgage co stating that the seller has given you authorization to manage their account and that all correspondences must go to you and/or your company.
Hope this helps..... Jorge Espinoza .....
yes it helps a lot, I would like to know what im liable for through the mortgage company though, and cant i just refinance an assumable, or is it really hard to do this?