Is Subject to illigal in Washington state

5 Replies

Read through RCW 61.34.  There are differences of opinion on whether one can safely navigate within this law for targeting pre-foreclosures and subject-to's.  At a minimum you'd want to work with a mentor or (preferably) attorney that is experienced in distressed property matters and well-aware of the many legal pitfalls.  (See, for example, RCW 61.34.120, which is full of convoluted language that may be subject to various interpretation.)  In my view, it IS possible to successfully target pre-foreclosures and subject-to, but it's a minefield.  If you can master this area, you may have little (legal) competition.

The above is provided for discussion only, and, to the extent it could be construed as advice or counsel, should not be relied upon without first engaging competent legal counsel for your particular jurisdiction and legal issues.  No client-attorney relationship is or should be construed from this discussion alone.  

Originally posted by @Donte Marcy :

Are subject to’s  illegal in Washington state because of the protection of distress sellers And am I able to target pre foreclosures Or just tired landlords

 Personally, I don't mix default and sub2. The last thing I want is to cure an arrearage (hopefully) then keep that loan and only have a weak deed conveying ownership.  

The sub2's I have done were current.  Usually a decent house with low equity. Sudden seller situation.  Higher caliber deed than a quitclaim. Hard to find. If this was my only strategy I would've starved years ago.

Pre-foreclosures I don't deal with all that much anymore (a lot of it because of the laws in WA) but have all my FSBOs sign a Form 22 FSBO stating they aren't distressed as a CYA.