Harold,
PLEASE read some more posts and articles here about buying subject to.
I WOULD NOT just have the seller quit claim deed the property to you.
Write up a contract, outlining the terms of the sale, and then have the seller deed the property to a trust, then assign the ownership of that trust to you.
There are PLENTY of other things you will need to gather, get signed, notarized and some recorded.
There is a whole lot more to it then a quit claim deed, and some of the questions/problems you posted here are the very reasons for doing it with a land trust.
Get ahold of an attorney to draw up the docs for you, or get a course about buying sub2, and have an attorney review the forms from it, making them comply with your state laws.
This is not a way to buy and not do it right.
Minimize the risks and make a profit with less worry.
Posted by BigHarold on January 17, 2003 at 09:52:31:
For the brilliant minds on this forum:
I’ve found a townhouse I can take over subject-to, and I was just looking over the current owner’s mortgage paperwork and came up with a question I hadn’t thought of before: I’m going to have her sign the house over to me in a quit-claim deed, then I’ll just keep making payments after that. What happens to the escrow account at that point? The title will change over to me, but since the mortgage company won’t know, they’ll keep requiring the escrow payments. What happens when they find there’s been a change in ownership (to avoid the do-on-sale clause)? Do they stop taking the escrow payments, or do they discover it’s been sold and call the loan due? Or, if I let them keep taking the escrow payments so they’re not alerted to the ownership change, how do the taxes and such get paid? There’s a new owner! This is quite confusing. Thanks in advance for any help you may be able to provide.