That’s what they want you to think and legally they can
but it is rarely done as long as they are getting the payment. Most likely they won’t even be aware of it and
if they do, you still have time to sell it. Be sure to
keep the existing insurance and just add your name as an “additionally insured”. This is one way they can find out if the insurance changes. I’ve done many
“subject-to’s” and never had a lender call the note. If you plan on keeping the property it’s best to use a “PACTrust” to eliminate ANY chance of the note
being called. If you don’t know about a PACTrust do a search on this subject. It’s been discussed before.
Can someone please explain to me how to flip properties with an existing mortgage? Say a balance of $35,000 condemned property or maybe even with fire demage. Is there somewhere in the courthouse where you could lookup this information or someone who is not very expensive? And another question what does the letters ET AL mean behind a name in the tax roll?
Flipping a property with an existing mortgage is easily
done by taking over the payments “subject-to” the
current mortgage, hopefully with no more money down, or
maybe a small seller “carry-back” 2nd TD. Just have the
property “quit-claimed” or deeded to you and go from
there, either selling the property fast to another investor or rehabbing and selling retail.
“et.al.” is an abreviation of a latin term (I think)
but it basically means there are others on title who’s
names are not included on the document or mentioned.