Subject To Question - Posted by Jeanelle

Posted by chandra on March 06, 2003 at 09:53:30:

Dear Jeanelle,

Subject To is quite a complicated process.
There are so many documents that you need to prepare
before executing one to avoid the lender from getting
freaked out and call the loan due. It’s impossible to
explain everything in bulletin board. I would recommend
you get the “ABC of Subject to” by Randy+Charlie.
They explained in detail and step-by-step manner on
how to setup one. It includes all documents needed.

Nevertheless here are some of the documents you need
to do a subject to:

  • Purchase/Sale Contract (with sub2 clause)
  • Warranty Deed To Trusty
  • Land Trust
  • Assignment of Beneficial interest
  • Notice to Insurance of policy change
  • Notice to Lender/Insurance of policy change
  • Addendum to Purchase/Sale agreement (CYA)
  • Limited power attorney
  • Seller Property Disclosure Form
  • Bill of Sale (if furniture etc included with sale)

These are the basic forms you gonna need. Now I would
advice you talk to an attorney before doing one.
Of course you want to talk to an RE attorney who’s
done one before.


Subject To Question - Posted by Jeanelle

Posted by Jeanelle on March 06, 2003 at 03:47:01:

If I was to purchase a home subject to the existing mortgage (just taking over the payments)…would I still be able to refi the loan or cash out some equity in my own name in the future??
Also, in buying a home subject to…what legal form would I use…Land Trust/Contract etc. I will be buying this property from a family member and we’re located in California.
Thanks in advance for your advice.