Subject to - Posted by James Harris

Posted by milestone on May 04, 2006 at 01:46:36:

I second Dutch’s statement.

Subject to - Posted by James Harris

Posted by James Harris on April 26, 2006 at 16:21:57:

Is it possible to get a property using “subject to” then get a second to give the seller cash? Please advise.

Re: Subject to - Posted by Phil Pelletier

Posted by Phil Pelletier on April 28, 2006 at 01:07:05:

Usually the “subject to” deals result from a seller unable to sell his home due to lack of equity or poor condition of the property. Both of those conditions will probably eliminate the possibly of getting a second mortgage. However, if you are fortunate enough to have acquired title to a property while keeping the seller’s loan in place, AND the place has some equity (usually requires 15-20% equity based on real-life market pricing), then, technically, yes, you can get a bank to lend you money, subordinate to the first mortgage. However, not all banks even understand the subject-to transaction, and most will avoid it. You can go sub-prime (high interest) and see what’s available for cash against Real property. Someone’s always looking to put money to work and will be willing to take the risk.

Good luck,

Phil Pelletier

Re: Subject to - Posted by dutch

Posted by dutch on April 26, 2006 at 17:14:07:

No. No one will lend you money on a house which you do not have title to. That would be like me borrowing money against your car. (good idea if I could figure out how to do it).