"Subject To" Questoin on Amount Owed

[Ricky Ostrom]

In a subject to deal....

When you say amount still owed on the property, is that the total of monthly payments still owed, or what the current pay-off statement says?

[Jon Holdman]

The certainly sounds like a wrap.  You are not making interest only payments, either.  Given those terms your $90K wrap loan will be paid down to $83,748.92 after five years.  That's what you will owe.  The fact the underlying $80K loan has now been paid down to $72K is irrelevant to you.  The seller will use their proceeds from the payoff of your wrap loan to pay off the underlying loan.  I would definitely do that payoff with a title company so you can be sure the underlying loan is paid off and released.  You don't want to pay off your wrap loan unless you're 100% certain the underlying loan is paid off, too.