Subject to Existing Mortgage Purchasing

6 Replies

What incentives could a buyer bring to the table in order to facilitate a seller closing a subject to their existing mortgage property sale?

Ah come on Bill I've seen hundreds of your replies. They are always so in depth. Is there anyway you could give this REI virgin some specifics. lol PRETTY PLEASE

I was referring more to the means of security for the seller. Methods I would be able to implement that could lessen the risk or liability of the seller in the long run. That way I would be able to make the idea of a subject to closing more enticing.

Your initial question was too vague which is why you got the short version. 

Your second question still requires a book. 

Consider these points:

Motivation of the seller

Why they are selling

At what level do they feel warm and fuzzy

A Sub-2 puts them at risk of the due on sale, solve that by your holding for a short period, your ability to sell or refinance it.

Their credit is on the line, solve that with a mortgage servicer to manage the transaction.

What if you die.....life insurance

Who can take your place if you're out of the picture due to sickness or accident, find a property manager, contractor, attorney, show your team as your back up.

If they carry back any equity, use a second mortgage or all inclusive deed of trust so they can take the property back. See your attorney.

Above all, show your ability to pay as agreed :) 

I apologize for my vagueness. My experience in the industry is very limited. I hope I didn't come off sarcastic. Thank you very much for your answers and time Bill.

Dan, Ive negotiated a lot of subject to deals and have been successful by simply stating that I will be helping them rebuild their credit so they can eventually get another mortgage must faster.

I also say that I will be using a third party loan servicing company to make sure that all the payments are being made on time and will stay on top of the payments. 

Also, if you are going to be taking a property subject to, and you are going to do repairs on it, ex: 5k-15k, then why would you want to default on the payments and give the house back to the owner?

You can just say hey if worse comes to worse, you will get a renovated house back that has improved its value! :D 

Hope this helps!

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