How do I sell My Subject to Deal???

5 Replies

I mostly do Wholesale, did 27 last year, but never a subject 2.   I found this Subject to and am not sure how to sell it.

4/2 2100 sqft  AVM's are from 300K to 308K.  I am taking it over for loan balance of $282,494.93.

Has a renter in there that is month to month paying $1800.00 the mortgage is $1850.00

What would you do with this???

Originally posted by @Dan Ruzicka :

I mostly do Wholesale, did 27 last year, but never a subject 2.   I found this Subject to and am not sure how to sell it.

4/2 2100 sqft  AVM's are from 300K to 308K.  I am taking it over for loan balance of $282,494.93.

Has a renter in there that is month to month paying $1800.00 the mortgage is $1850.00

What would you do with this???

It depends. What did you tell the sellers? Do they know? Are they okay with it? Is the payment PITI? What state? What will you do if the renter stops paying?

They know everything. Payment is PITI included. CA. It is in the contract that I can hand the property back to them at anytime and specifically if the property becomes vancant. The agreement is as risk free as imaginable. That said what would. You donwith the property

Really my only concern is if I take a 20K down payment and the lender calls the loan due.  I would have folks in the house that probably don’t qualify and maybe need more than the 20K Down in my pocket to get them financed.  Any banks enforcing due on sale clauses??!

spread is too thin in my mind no room for boo boo's .  due on sale although an option as many will say does not happen often.. but if your seller knows that there is that risk and THEY can clear the mortgage if called with cash then your fine because they cant refi because you own and or the person you sold it to owns it..

so at what length will they go to save their credit that's the issue.. but doing all the deals your doing I am sure you don't want to put a seller in a bad place.. these are great when they work but if they get tangled up and you don't have 285k in cash or the ability to refi your end buyer as you state probably does not.. so that's the risk.. its the sellers risk 100%