Attorneys and Subject To

[Ryan Urban]

I've looked at a variety of REI strategies to supplement my standard Down Payment/Finance/Buy & Hold approach -- from mobile homes to foreclosures to wholesaling -- and I'm now considering Subject To.

It's clear, from reading MANY articles on the topic, that it's somewhat controversial and borderline ethical at best. Any strategy that involves keeping secrets from a lender has red flags all over it. Call the use of Land Trusts and LLC's what you will, it's less than 100% honest. Further, it has been fascinating to see how many books and articles deal openly with methods for fooling lenders.

That said, I've contacted several local real estate attorneys, asking if they handle Subject To closings. The responses I've received so far:

3 said "I'm buried and I'm not accepting new clients"
5 said "I don't do them, I wouldn't do them, I wouldn't recommend them"
2 said "We're dealing with lawsuits over these things, beware"
2 said "Yes, I can help"

Not exactly promising. I'll meet with the two who showed positive interest and see what they have to say. I want to find out if this can be done ethically, legally, without hiding ownership. I'll report back.