Homeowner · Virginia Beach, VA · Member since 2008 · 91 posts · 9 votes
5 years ago I did a 'subject to' on my home. However, my name is still on the mortgage. Investor on the deed. The investor told me that I had to keep my name on the mtge for 5 years-which is this month. I had someone look at the paperwork & of course, that timeline was not put in the contract. 5 years ago, the investor also told me that I could take the house back. How can I get my name off the mtge- I do not want to be tied to the house. The loan was thru VHDA. I am so hurt, disappointed & feel I was hoodwinked.
Any suggestions would be greatly appreciated!!!
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
@Blair Poelman agreed usually bad idea for seller... puts the seller totally at risk for
1. payments not being made and their credit trashed
2. they go to buy something else but can' t becasue this mortgage is still in their name.. ( no one told them that would happen)
3. loan is called buyer can't refi or sell.. and now seller has a NOD on their credit which is about the worse thing that can happen to someone's credit.
4. Seller is no longer in title simply nothing they can do.. buyer puts junior debt behind and then defaults.
just so many things that do not favor seller... and of course you have sharks that do this as a scheme and I won't even go into what they do so not to give any of the bad actors ideas LOL
Accountant · Saint Louis, MO · Member since 2017 · 409 posts · 362 votes
8y
if you have a contract, sounds like you do, have a RE lawyer take a look at it and see what can be done. If you're on good terms with the buyer you can ask him if he's willing to do a refi on the property that would pay off the mortgage. my understanding is that most Subject to deals are done with a plan in place to refi the property eventually to pay off the mortgage. if there's nothing in the contract though you might be SOL. good luck
Real Estate Broker · Provo, UT · Member since 2013 · 689 posts · 511 votes
8y
I'm really not a fan of the subject to. Lots of potential issues, and it's really not for me.
Call an attorney, but likely that mortgage will have to get paid off before you can get out from underneath it.
There's probably an acceleration clause on the mortgage, so if the lender knows about the subject to and change on the deed you / the investor might have to pay of the note immediately. Careful on that one.
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
@Blair Poelman agreed usually bad idea for seller... puts the seller totally at risk for
1. payments not being made and their credit trashed
2. they go to buy something else but can' t becasue this mortgage is still in their name.. ( no one told them that would happen)
3. loan is called buyer can't refi or sell.. and now seller has a NOD on their credit which is about the worse thing that can happen to someone's credit.
4. Seller is no longer in title simply nothing they can do.. buyer puts junior debt behind and then defaults.
just so many things that do not favor seller... and of course you have sharks that do this as a scheme and I won't even go into what they do so not to give any of the bad actors ideas LOL