Few missing pieces in Subject to deal
Hey,
I am starting to learn now the all subject to thing, and I learned:
* that when I am initiating a Subject to deal, what is being done is that the deed and the mortgage payments are transferred to me, so I would have full control on the property. But the mortgage STAYS in the sellers name.
* that if the property would foreclosed, they will come to me and not him.
* about the due on sale clause, that if I am paying constantly every month, the bank typically will not initiate the due on sale clause. Basically because the bank wants money and not real estate.
So few questions:
* What that mean stays in his name? Like what the consequences for that? Let’s say I would have a seller that I am explaining him how this process goes and also mentioning that only the mortgage STAYS in his name. is there any risk for him on that?
* About that the foreclosing the bank chase me and not the seller, is this because I owe the deed or because I’m paying the mortgage?
* What’s the difference between the mortgage stays on the sellers name by me pruning the mortgage (if I would buy this house with a typical mortgage)?
* if the due on sale clause does initiated and the required the money back in full, to which they go? To me or the seller?
* any other notes that you think I should know?
thank you