Seller’s Escrow Account with sub 2 deals??

[Ryan Johnston]

In a Subject To transaction, how do I handle the seller’s escrow account? In particular, what happens when I am doing a short term purchase, for a flip or wholetail, and I’m going to be crediting my end buyer with taxes but won’t be getting the balance in the escrow account to cover them - as I understand it, that money reverts to the name on the loan, that is, the original seller.

I’m sure I’ve got my logic mixed up somewhere - could someone shed some insight on that?

[Mitch Messer]

Hi @Ryan Johnston. As part of your sub2 closing, you should be getting a limited power-of-attorney (LPOA) from the seller, which will authorize you to receive (and endorse) all manner of payments related to the property, including escrow refund checks, insurance claim proceed checks, etc.