I have been researching SUBJECT TO, and what Ive notice is that most subject to deals are done with properties that have little or no equity.
Is SUBJECT TO possible with high equity properties, and how would that be structured? Pay off the default amount to bring the loan current, and also negotiate more cash for the sellers equity?? I realize that it depends on the condition of the house.
I was searching a Pre foreclosure (NOD) list, and found a house. I would think someone in this position would put it on the market, but they have not. Maybe it needs major work??
72k - Mortgage balance
$14k -Default amount
$1,000 - Approximate monthly payment (mortgage, tax)
Also, is SUBJECT TO still possible when the NOTICE OF TRUSTEE SALE has been filed??
Thanks In advance for the insights.
Yes, you transfer title, cash out homeowner for a portion of their equity through the sale, and reinstate the loan in your example. This should be done through escrow and get title insurance.
Many homeowners in foreclosure don't want to sell, they want to keep.
Yes sir, Subject to is entirely possible in this situation. It really just depends upon the specific hardship of the property owner. Subject to can be done at anytime during the foreclosure process as what you are doing is paying off the arrears to cure the default. It is somewhat complex but can benefit both parties.