Posted by Doug on February 19, 2001 at 17:38:07:
I assume that a “subject to” deal is the same as “purchase subject to mortgage”. That is a purchase in which a buyer agrees to make the monthly mortgage payments on an existing mortgage and in which the original borrower remains liable if the purchaser fails to make the payments as agreed at the time the loan was originally closed.
Is this simply an additional clause in a standard sales agreement? Is the point to tie up the property while you find someone who will pay more? If so, should you do anything to the property while it’s tied up like landscaping, painting, etc.