Question on Subject to:

3 Replies

How can you truthfully answer potential sellers who ask whether it's legal to take over their payments while they're still legally the owner(s)?  How do you justify it yourselves when it's clearly stated in loan contracts that this is a transfer of ownership?  Should the bank demand accelerated payment, is it true that you can re-sell it to someone else or turn it back over to the owner so there won't be a problem?  

I'd like to see I'm not uncomfortable with this, but I am...


its called an alienation of title.. 

the Alienation of title gives the lender the RIGHT to call the loan.. its NOT illegal.

but your on the right track its HIGHLY risky for sellers for many reasons not the least is their credit could get trashed if the people who took it over failed to pay.

My original post had a typo: I would like to say (not "see") that I'm comfortable with this strategy because I would like to try it.  Clearly, this is not something in which I'd personally engage, but I'm not my client.  I also realize that lending institutions rarely come after whoever is paying off the loan as long as it's being paid promptly.  However, I have to feel that while much money has been earned through subject to:s, that it's still an honest way to earn a living.