"Subject to" question

"Subject to" question

Real Estate Investor · norwich · Member since 2008 · 12 posts · 0 votes

If I were to purchase a property subject to existing financing, I am ultimately taking control of the title and the property while making loan payments that are still in the sellers name. Now, if i was a jerk, I could not pay the mortgage and this would further destroy the credit of the seller because their name is still associated with the mortgage payments. Is there any contracts or documents that investors need to provide to the seller which will insure them that I will make the payments and provide a win win for both parties?

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  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    The purchase contract that you have with the seller will lay out the responsibilties of both parties. However, nothing will "insure" that the buyer makes the payment. If the buyer fails to make the payment, you can be sure that the seller will sue.

    Mike

  • Real Estate Investor · norwich · Member since 2008 · 12 posts · 0 votes
    18y

    Ok, that makes sense, thanks. So, whats your role in the game of real estate? Are you an investor, broker, realtor....? How long have you been involved with real estate and whats your assumption as to what the housing market will be in the future (in general)?

  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    I'm in the rental property business. I'm starting on my sixth year of business. I assume that real estate will continue to come down in price in the foreseeable future.

    Mike

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    18y

    To add to what Mike said, remember that every town in every city and in every state has it's own DNA. That said, a blanket statement that RE prices will come down more in the future is a general statement. Some areas are level, some increasing slightly, others are declining, and others are sinking.

    Just my $.02

  • Real Estate Investor · norwich · Member since 2008 · 12 posts · 0 votes
    18y

    I use such websites as trulia.com, realtor.com, realtor.org, yahoo real estate, zillow and others to keep me update with the most current real estate information. Are there other sources and/or websites that you would recommend? Thanks for your .02 before

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    18y

    Yes.
    Get a title company on your team and develope a relationship so that you can have direct access to title reports/searches. This gives much more accurate values as well as current liens against the property.
    I also recommend you do find a solid agent that can run you comps as well. The other site you mentioned are good, but all vary on the accuracy.

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