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.
GOOD LUCK!