Re: “Subject to Deals” - Posted by JoeKaiser
Posted by JoeKaiser on January 28, 2000 at 09:08:13:
I’m constantly amazed there’s a commotion about “Subject to” deals, and that it’s now being decribed as a technique. We sure never thought it was.
Buying “subject to” means somebody gives you a deed and you now own their property. That’s pretty much it. If there are liens or judgments owing, you’ve now got to deal with them because you’ve acquired the property “subject to” whatever was owed. You probably don’t have any personal liability with regard to the liens, but the fact they are owed means at some point you’ll need to deal with them. If there’s a loan, you’ll need to continue making the payments, obviously.
But again, I don’t want to complicate things here. It’s as simple as someone giving you a deed and you taking on whatever comes with the property. You’ve now bought “subject to” whatever is owed. Pretty simple.
Why don’t we just call it a “take over payments” deal? Because when you agree to take over payments, you may be obligated under the loan and commited to making those payments. When you purchase “subject to,” no such promise is made.