Posted by Natalie-VA on December 16, 2005 at 16:11:45:
The deed is recorded at the courthouse and the buyer becomes the owner.
The seller is taking the risk that the payments might not get made. If he doesn’t want to take that risk, he should require the buyer to get new financing.
–Natalie
Clarification on “subjet to” - Posted by Don
Posted by Don on December 12, 2005 at 16:22:27:
What do you file at the court house? What guarentee does the seller have that the payments will be made in a timely manner and his credit will not be damaged if the buyer pays slow?
Re: Clarification on “subjet to” - Posted by Phil Pelletier
Posted by Phil Pelletier on December 28, 2005 at 13:20:54:
Subject To’s are always the last resort of a desperate seller. The alternative is to return the home to the bank either through Foreclosure or Deed in Lieu of Foreclosure. Both methods damage the seller’s credit. Subject To’s should only be done with an experienced investor who realizes the importance of paying on time, every month. The investor should put only solid tenants in these places to avoid any cashflow problems that may lead to missed payments. I have done enough Subject To’s to know how to do it, and I still got hosed be some renter who failed to pay the payment in November. But I still made the house payment with my own money, as agreed.