Selling a subject to loan

4 Replies

Might get a house subject to the seller financing very soon with no money due to seller in the deal, just wants me to take over. Seller just wants out and there is only about 13K in equity. Property is in good shape so my plan is to lease option the home, but when it's time to sell how does it work with my buyer? The deed is in my name obviously, but the financing is in the old owners name. How does this work? I know it's probably pretty simple but just want to be sure. My guess is loan paid in full in old owners name and deed transferred out of my name to new owner and his financing pays off old owners loan and that's that????? 

1. Buy the property sub2 through a lawyer, check title is clear.  Make sure seller knows about risks of due on sale clause.

2. Lease Purchase to Buyer with 3% down to you, non refundable, create (1) lease and (2) sale and purchase agreement, open escrow

3. Assist the new buyer to increase FICO, I use a Credit Improvement Co 


4. Use a RMLO to check out Buyer.  I use

thank you for the info. I was going to write up a seperate contract from my purchase agreement. My purchase agreement states subject to seller financing and my contract was going to state all the risks involved for the seller doing a subject to. Thoughts?

It's "subject to the existing mortgage".  This is not owner financing.

sorry I need to be more specific.

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