Re: Newbie Question - Posted by Maurice(Ca)
Posted by Maurice(Ca) on June 18, 1999 at 15:15:38:
I’m a newbie…so this is just my 2cents…
“Subject to” deals are where you take over the sellers monthly payments subject to the existing loan terms. You are not qualifying for this loan & you are not assuming it in the sense of you taking over the loan in your name. The seller is still liable & it’s still on their credit. This usually happens when someone is behind on payments & instead of getting a foreclosure, they allow an investor to catch up the back-payments & then take over the payments…they just walk away. It is very professional to let them know that they’re still liable.
There are forms you should have them sign (look on www.legalwiz.com I believe) to protect you.
I had an owner willing to sign me over his property this way, but when I researched his loan & his payments, it just wouldn’t work for me. Also you have to make sure they are not already in the foreclosure process.
As far as Legrand, My partner & I have his courses & they are excellent…helped us get our first wholesale deal!