Wholesaling Subject-To Deals

3 Replies

There was a topic from a few years back regarding wholesaling subject-to deals, although I still have questions. It seems from what I read there that you wholesale a subject-to as you would any other type of wholesale deal; however, if the end buyer is assuming the remainder of the seller's mortgage, is the remainder the amount that is written on the Purchase and Sale agreement? That is, if the seller owes $65,000 on the house, would the purchase price on a Purchase and Sales agreement just be $65,000? But then if the end buyer pays off the seller's mortgage at closing, then why does it seem that you would need to be extra explicit that the end buyer is assuming the terms of the seller's mortgage if they are only paying off what's left right then and there? Any other tips on the subject would be appreciated.

Originally posted by @Dawson Hunt :

There was a topic from a few years back regarding wholesaling subject-to deals, although I still have questions. It seems from what I read there that you wholesale a subject-to as you would any other type of wholesale deal; however, if the end buyer is assuming the remainder of the seller's mortgage, is the remainder the amount that is written on the Purchase and Sale agreement? That is, if the seller owes $65,000 on the house, would the purchase price on a Purchase and Sales agreement just be $65,000? But then if the end buyer pays off the seller's mortgage at closing, then why does it seem that you would need to be extra explicit that the end buyer is assuming the terms of the seller's mortgage if they are only paying off what's left right then and there? Any other tips on the subject would be appreciated.

 It means taking over whatever amount is still owed on the loan. I cover Texas. I will take all of them you can find. It needs to be done with a more sophisticated investor.