Seller financing with subject to

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Hi everyone, I’m currently looking at a deal in Massachusetts. I’m trying to figure out if it’s possible to do seller financing with a subject to on the current mortgage? About the deal 18 units with an asking price of $2 million The seller currently owns $500k She is willing to carry the note but can I do a subject to to the $500k she owes? Any info or point in the right direction would be helpful Thank you! -Tom

Hi @Tom Manna . You can pretty much always do Sub2, but the real question is how likely the loan is going to be called for violation of the due-on-sale clause (DoSC). Who's the lender for the $500K? Is it a large bank, a commercial lender, a small bank, an individual? Large lenders might be less likely to notice, provided you take appropriate steps like placing the property in a trust first.

If you've never done Sub2 before, I probably wouldn't start with a $2MM deal. Could you find a serious buyer with deep pockets looking for a great financed deal that could pay you a wholesale fee?