Question about subject to... - Posted by tom nunes

Posted by Bud Branstetter on July 20, 2001 at 08:51:05:

Only the new lender could acurately answer that. The easy answer is yes. FHA or VA loans it would directly affect. Other lenders may allow the 75% of income while charging 100% of the debt and expect a 35 or 40% debt to income back end ratio.

I don’t know if you are familiar with Pactrusts. Bill Gatten has an excellent letter that he writes as trustee to the new lender explaining the transaction with the Pactrust. So far he claims 100% success with the letter in having the new lender view it as a sale and not effecting the borrowers ratios. I have tried rewriting the letter for contract for deed type situations but it just did not have the strength of his because so many attribites do not apply. A creative writer could write a letter but I don’t know how the lender would view it.

There are several courses like Bronchick’s Alternative Financing that has all the information to do standard subject to deals. Or you can go to Bill Gatten’s site to learn about his approach.

Question about subject to… - Posted by tom nunes

Posted by tom nunes on July 20, 2001 at 04:32:42:

Hello all,

I have a question about picking up houses subject to the existing loan. Does it impact the sellers ability to get another home loan? (Let’s say it was a job transfer and he sold the home to me subject to the existing loan.) It seem like a great way to pickup a property with nothing down but I wanted to know how it would impact the seller in terms of his/her ability to get another home loan.

Also, Is there a source on Creonline where I can find out more about this? (Step by step, contracts, How to explain it to the seller, etc.)

I appreciate the help,
Tom Nunes