Can someone please tell me how to do a SUBJECT TO deal????

[Cynthia Hernandez]

Hi, I'm a newbie to the real estate investing world and I would like to know what a subject to deal is and how to go through it? And what is it what I'm looking for? This lady wants to sell me her house for 100,00 but wants me to take over her mortgage and she owes 96,000 . I was planning on doing a wholesale with this property, but another investor advised me to a subject to instead. I don't want to waist time and go any further if I don't know what I'm doing here. So please can someone give me advice on how to do this step by step so I can continue with this quickly. Thanks, Cynthia.  

[Darren Budahn]

@Cynthia Hernandez

 A subject to deal is when the seller deeds their property to you, but leaves the underlying mortgage in place in their name.  You are responsible for their payments.  If you stop making payments, you will ruin the seller's credit.  That is a big responsibility.  Most times you would want equity in a subject to deal. It looks like you would be paying the seller.

What is the home worth? Are you aware of the Due on Sale Clause?  Do you the ability to refinance if the loan gets called?  

Just some things to think about.