Real Estate Agent · Renton, WA · Member since 2015 · 33 posts · 3 votes
Hello BiggerPockets.
I am in a process of doing my first Subject To deal.
I understand you need a deed of trust and a promissory note to put a lien on the property, but not to sure if that will help. My concern is that since the seller is still on the mortgage and title, at closing the seller will sign and the money will be transfer into the sellers account. Is there a way to make sure that the seller will pay off the loan with the money and write me a check for the rest? I do not want the seller to say no and keep all the profit after paying off the loan.
Investor · Scottsdale, AZ · Member since 2016 · 1k+ posts · 885 votes
9y
You appear to be talking about a Wrap, not a Subject To. Have your closing attorney draw up a Wrap Around mortgage to protect your interests. There are servicing companies that you send your payment to and then they send the payment to the bank with the difference going to the seller. You are on the right track, but I think you will need help to get this completed. These are the kinds of transactions we teach.