subject to question. help!

4 Replies

I'm new to investing and have been doing a little research on "subject to" deals. I honestly would like to acquire a subject to Property for my family to live in first before I get into any other deals. I don't see how this would not work but I don't know if there would be any issues with this. I would simply just be taking over mortgage payments right? I live in Florida, and am trying to move my family out of our current home to a place closer to where our day to day activities (work/school, etc) reside. Any advice, and how can I identify these opportunities?

Thanks

Nino

Hi Nino:

There are no opportunities to "identify" as potential subject-to deals. As a negotiator, you must be able to discuss this with the seller as a possible selling option and find someone who's willing to sign their property over to you while remaining on the mortgage.

Perhaps the best way to start is to find a real estate attorney who has done these types of deals and is comfortable with closing them for you.

Naturally, changing the deed allows the lender to use the due-on-sale clause in the loan to call the loan due immediately upon your purchase, however, this clause gives banks the right to call the loan - it is not an obligation. Most lenders do not call their loans as all they care about is a performing asset.

Being so new at this, you may even wish to discuss it ahead of time with the lender. We have gotten permission from many lenders to take over loans. If nothing else, the conversation would prove a great learning experience for you.

Good luck in your real estate ventures.

Thank you so much for the immediate response. I didn't expect it! I really appreciate the info! 

One more thing, should I be concerned if I decide to live in the investment property as opposed to using it for investment purposes? To me it doesn't make a difference but, would it to the lender?

Originally posted by @Nino T. Barone :

Thank you so much for the immediate response. I didn't expect it! I really appreciate the info! 

One more thing, should I be concerned if I decide to live in the investment property as opposed to using it for investment purposes? To me it doesn't make a difference but, would it to the lender?

If you are buying it to live in how are you calling it an investment property? Are you planning to live in and flip it?

Very possibly, but even if it were for a longer period, it will still grow equity. I just think despite what I do with the property, it's an incredible opportunity to acquire it without worrying about down payment and closing costs.

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