portland, OR · Member since 2008 · 2 posts · 0 votes
I am just starting out and will prove my ignorance with this post, but appreciate any help you may have to offer.
I think I understand most of the mechanics of a subject 2 sale. What I can't seem to figure out is why a seller would want such a deal. Doesn't the seller maintain the loan in their name, therefore limiting their access to gain another loan on a new home?
And welcome to our forum! Thanks for your question.
My take on this (and I'll leave room for others to jump right
in and add their thoughts) is that if a seller needs the money
that is in their house, they won't do a subject to sale.
But if they have plenty of money and don't need their
equity right away, and if it means the difference between
selling and not being able to sell, they will do it.
A person moving to another city because of their job, and
needing to sell their house and buy a new one over there
is not a good candidate for subject to sale.
An older couple who own their house free and clear and are
moving into assisted living are a better fit.