Posted by Steve-WA on July 30, 2003 at 23:23:55:
ignorance is curable! Kudos for the courage to ask!
Please excuse my ignorance - Posted by Brian (Savannah)
Posted by Brian (Savannah) on July 30, 2003 at 21:18:46:
I’m almost embarrassed to ask but what is a sub2?\
Thanks in advance
Brian
Re: Please excuse my ignorance - Posted by Brian (Savannah)
Posted by Brian (Savannah) on August 04, 2003 at 21:03:52:
Crystal clear now…Thanks for the explanations Steve and Dave!!!
Brian
Re: Please excuse my ignorance - Posted by Dave Starr (CO)
Posted by Dave Starr (CO) on July 30, 2003 at 23:10:22:
It’s not ignorance, Brian, most of us are here to learn and it’s hard to learn wihtout asking questions. Real Estate people are second to none when it comes to over-used acronyms and abreviations. Sub2 is referring to taking title to the property ‘subject to’ an exisiting mortgage. that is, effectievly, assuming the original loan. This is frequently a technique done to try to avoid ‘due on sale’ clauses in conventional financing. It has little applicability to the mobile home market because the majority of mobile homes are not real property and not financed via mortgages.
Best regards
Dave
excused - Posted by Steve-WA
Posted by Steve-WA on July 30, 2003 at 23:04:30:
“Subject to” the existing mortgage is a method by which one can take the deed to real estate, relieve the owner of their burden, and make their payments for them. Involves placing the RE in a trust, transferring beneficial interest in the trust from the owner (seller) to the investor ('s company), shifting the insurance to renter’s policy, and placing a rent-to-owner in the home, until they can refi and pay everybody off. And the bank keeps getting their payments, so they are happy, and none the wiser and (usually) do not find out and enact the due-on-sale clause.
That’ll be $500 for the mini course.
See the main board for manymanymany details.