How Dies a Seller Receive His Equity with a Sub To?

Member since 2023 · 164 posts · 15 votes

Hello. If an investor purchases a pre-foreclosure property via sub-to and there is $50,000 of equity left over after the investor pays arrears, closing costs and other expenses, does the investor pay the seller $50,000? Thanks.

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Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
2y
Quote from @Joseph Hernandez:

Hello. If an investor purchases a pre-foreclosure property via sub-to and there is $50,000 of equity left over after the investor pays arrears, closing costs and other expenses, does the investor pay the seller $50,000? Thanks.
It depends on what you negotiate. Most likely the seller will need some money to move though.
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
2y
Seller either takes cash from closing or the equity is in the form of a subordinate lien… or a combo of the two.
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