sub to protection for seller

[Yocheved Beer]

what happens if the buyer g-d forbid dies on a sub to deal, how can the seller be protected from this?

[Jay Hinrichs]

Quote from @Eliott Elias:

The loan will be transferred into the heirs names. But this needs to be initiated. You are most likely going to have to let the bank and heirs know.

this is not correct..  the loan stays in deceased name and there is a probate or if the deceased has a trust the stipulations of the trust are followed.. if there is no money or equity then payments stop and bank forecloses thereby trashing the original owners credit.. Although death is far down the list of things that can happen that really screw up the original owner.. this is why seller should NEVER sell straight sub too far to much risk.. and especially today's market when sub too is being pitched to the no money no credit crowd who is going to get rich doing this..  As Mr. Brooks mentioned Wrap is how you protect yourself.. that way when your buying stops paying you keep paying on your mortgage while you foreclose out that buyers position thereby protecting your credit standing. LAst thing you want is mortgage lates or even worse a foreclosure being tagged to a loan that is still in your name.. ruin your credit for years to come.