Updated 2 days ago on . Most recent reply
Subject To Financing
I have a residential property in eastern NC, purchased in a business name. We are now trying to (re)finance the property to get the loan out of the previous owners name but the bank we normally use doesn't service "subject to" deals. Is this common for commercial institutions? If so, what's the best way to procure a new loan?
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@Jerry R Harris Is this a true subject to? Do you hold the deed? I ask because you said the previous owner is involved but the previous owner shouldn't be involved at all if its a subject to.
If you hold the deed then it's just a normal refinance. You get a new refi mortgage and the old mortgage is paid out. That's it. If your lender won't do a simple refi find another one who will.
If the seller held a note for their equity then you can pay them out now as well. I'd ask them to take a discount for an immediate cash out.