"SUBJECT TO" - Posted by Daveh

Posted by CarolFL on April 12, 1999 at 07:36:25:

As to the Realtor’s reaction, who can tell? I never ceased to be amazed…

I think that one of the best remarks in all of the recent discussion of DOS is that the lender MAY call the loan due should they

  1. become aware of the transaction and
  2. care to do so.

There are a lot of posts concerning DOS - more than you want to read, but check out a few anyway.

Also, realize that the loan will remain on the seller’s credit report (which may not be all bad) until it is paid off. Just don’t lete yourself get caught “ignorant” … you lose control of the situation that way!


“SUBJECT TO” - Posted by Daveh

Posted by Daveh on April 11, 1999 at 19:55:41:

I want to purchase a piece of property that has an assumable mortgage, but don’t want to ‘assume’ the mortgage. I understand that the way to do this is to purchase it ‘subject to’. My question is will the seller’s realtor know what this is? Should I bring it up in the beginning or just mark it on the purchase contract per Ron’s samples. If they question what this means, can anyone tell me what the term ‘subject to’ is referring to? - subject to WHAT? The loan is a nonqualifing loan I am told. If they won’t agree to the ‘subject to’, would it be advisable to assume the loan. Thanks for your help

Re: “SUBJECT TO” - Posted by EddieFL

Posted by EddieFL on April 11, 1999 at 22:58:11:


If the loan is assumable with No Qualifying you do not have to worry about “subject to”. You can assume the loan in your Corporation Name or in a Land Trust. Doing this takes more info that I can give you here, so I suggest you get some info on Land Trusts or if you have a Corporation, then assume it in a Corp. This will not appear in you name, thus it will not appear on your credit report.

Davei, all “subject to” means is that you are telling your seller that you are going to buy their property with the existing loan in place and you are not going to assume it or try to qualify for it. They understand that the loan will stay in their name until you sell the property or refinance.

Hope this helps,

Eddie FL