Posted by phil fernandez on January 29, 2001 at 08:08:43:
I would always prefer to get the deed and own the property now. Of course, at times a seller might have a problem deeding his house to you while remaining liable for the mortgage you want to take " subject to". If I couldn’t convince my seller to deed me the house, I’d certainly then try for a lease/option.
what exactly is a subject to deal? - Posted by Scott Az
Posted by Scott Az on January 28, 2001 at 15:18:59:
I’ve heard many people speak about “subject to” deals along with l/o’s in the same sentence. whats the difference?
thanks for any imput in advance.
scott
Re: what exactly is a subject to deal? - Posted by phil fernandez
Posted by phil fernandez on January 28, 2001 at 17:59:10:
With a “subject to” transaction we are getting the deed and are taking the property subject to the seller’s existing mortgage. In other words the seller’s mortgage stays in place.
With a lease/ option, the deed remains with the seller or perhaps with a third party in escrow until we excercise the option to buy.
This is an over simplication. There are more details to “subject to” and lease/option deals.
Re: what exactly is a subject to deal? - Posted by Ben (FL)
Posted by Ben (FL) on January 29, 2001 at 11:27:14:
You know, I sold a house a couple of months ago to a guy who for some reason was not at all comfortable buying on a lease/Option, but was comfortable buying on a Contract for Deed. Well, I asked four different title companies, and not one of them said that we could sign the Deed, not fill in the date, and then hold it in escrow until the Contract was satisfied.
Is that just a State thing, or did I just not use the right magical worms…uh, words?
Re: what exactly is a subject to deal? - Posted by Mark (OK)
Posted by Mark (OK) on January 28, 2001 at 23:56:46:
What are the circumstances you would prefer a L/O over a “subject to” deal? Do the owners sometimes hesitate on the “subject to” deals?