Re: Lender’s questions re subject to - Posted by Ed Garcia
Posted by Ed Garcia on November 30, 2000 at 11:02:25:
It appears to me that the broker is not trying to create a problem for you, but is trying to qualify your seller, his borrower, for a new loan. You have already given him information regarding this matter, and the answer is no. Obviously the loan is still showing in the seller’s name, and is being counted against the seller for the benefit of debt service.
You’ve told us that you’ve purchased subject to, and yet have not assumed the loan. You don’t tell us why, and what was the understanding between you and the seller.
Since you haven’t assumed the loan, and if you were suppose to do so, then I would tell the broker, that I’m in the process of loan assumption. A good broker could work with that information, if given in writing. Don’t put anything in writing you don’t plan to do.