Subject to Exit Strategy

1 Reply

I am a new realtor & wholesaler and I have a client ( my grandfather) who wants to purchase a home that is headed for auction in a month. He can afford to bring the mortgage current with his savings but can't afford to pay cash for the home and wanted to get a VA loan. How could I protect his risk just in case his loan doesn't go through but he's already paid the sellers mortgage to current? I was thinking of doing a subject-to deal but would he be able to refinance? Help!

If you take it subject to then you can seller finance it to him on a land contract for his existing financing.

Check with a local real estate attorney to make sure all the documents are in order.

If he needs to refinance to create lower payments then that would fall on you if you take it subject to.