Posted by Jason (AL) on April 11, 2007 at 17:58:21:
Generally subject to deals aren’t assigned.
At least it’s not wise for one to do so.
Once your seller DEEDS you the property, the property is now yours to do as you please (sell it, rent it, lease/option it… etc. etc.). You would record your deed
at the county courthouse in which the property is located.
I would guess you are “protected” from anything the seller does, as he/she no longer owns the property.
It would be no different had you went down to your local bank and financed the purchase using loan proceeds.
Buying a house subject to the existing financing is simply another way to purchase a property.
Only that it saves you from having to obtain financing, resulting in a faster close.
The DOS clause can be called at the banks OPTION.
Whether they will or not…well, if they’re receiving timely payments, I don’t see why they would.
However, don’t let that stop you from doing any deals.
So, here’s how it would go down:
- seller deeds you the property
- you record your deed @ the courthouse (you now own it)
- implement your exit strategy (sell, rent, whatever)