On the purchase contract, in the area where you list where the purchase monies are coming from, indicate the amount of the principle of the loan in question and also indicate that the source is “subject to the exsisting loan from XZY Bank”.
Also havve a CYA disclosure letter drafted disclosing that the sellers are aware of the nature of the subject to and agree to it. Just lay out all the facts, the amount, that it will remain in the sellers name and on their credit record etc.
Can anyone help me with all the necessary forms to complete a subject to deal? I have a deal pending and I am desperate for help. Also, do I need an atty to help me with this?
You don’t know what forms you need. You don’t know if you need an attorney or not to help you with this. Which says you don’t know enough about these types of deals to be getting involved with them yet. Before you just jump into deals like this you should educate yourself on it first! These types of deals are a bit more involved than just tossing out some forms to be signed and closing the deal.
I would strongly recommend you get a good course on the subject to properly educate yourself before you end up getting yourself into trouble.
You have a deal pending,
What are your plans for this property?
Do you have adequate reserves on hand to cover yourself if anything goes wrong? How is your credit? Could you qualify to refinance if the lender were to find out and call the loan due? If not, do you have the cash on hand to pay the loan off it need be? If not, how would you take care of this if it were to ever become a problem?
Now if you are going to say you can’t afford to get a good course on this subject right now, then you are not in any position to even get involved with doing this type of deal yet.
Check out this link for everything you need to get you off in the right direction: