Taking a commercial mortgage subject to
The seller of a commercial property has an existing mortgage of 1.6Million. It is an assumable mortgage and we plan to assume it as the financing is non-recourse and incredibly favorable terms.
That brings up the question, can you do a "Subject To" deal with commercial mortgages? I know there's a possibility of a due on sale clause for the mortgage of a residential property. I assume that would be the case here.
Has anyone done a SubTo with a commercial mortgage? It seems it may be even easier than going through the assumption process and paying the 1% fee.