Posted by Sal on August 08, 2003 at 19:09:19:
Tania,
You are correct. The buyer is morally/ethically obligated to the seller. The seller is obligated to his/her lender.
For more info, type in “Subject To” using google and read all the results. The website sub2deals.com will also give some info. Or you can do a search on this website.
Sal
Subject to - Posted by Tania(IL)
Posted by Tania(IL) on August 08, 2003 at 17:39:48:
Can anyone help me with this? In an article by Charlie France she states that when buying subject to the existing loan the buyer is not legally obligated but morally obligated to make the mortgage payments so as to avoid forclosure. In the event that the payments are not being made it will adversly affect the seller and not the buyer? But if we obtained the deed we have total control of the property and can reap the tax benefits? Can someone please clarify this?
Thanks,
Tania
Re: Subject to - Posted by Brent_IL
Posted by Brent_IL on August 09, 2003 at 17:30:50:
In addition to legal liability to the seller, remember than you are incurring liability toward your new buyer or L/O’r when you have promised to convey title.
Re: Subject to - Posted by Jasonrei
Posted by Jasonrei on August 09, 2003 at 12:57:55:
The house is yours subject to the financing in place, but the financing is not in your name. Still, depending on your agreement (verbal or written) with the seller, you may be morally obligated to make the payments in a timely manner, you might also be legally obligated- not to the lender, but to the seller. Tax benefits you’d be able to enjoy would be deductible mortgage interest (if it’s your home) or depreciation and other expenses on the property.
Re: Subject to - Posted by Redline
Posted by Redline on August 09, 2003 at 01:51:04:
This is true - explain exactly which part you have an issue with, or don’t understand.
RL