Subject to questions... - Posted by Jeff T.

Posted by Richard on November 14, 2003 at 13:05:26:

Don’t buy into this crap. I spent hundreds on this “Subject To” course & only buried myself in debt. State laws differ, as do mortgage companies. Either Indy Bob is full of sh!t or he’s just out to make a quick buck on people. It’s horsesh!t. If I meet mr Bob I’m gonna treat him to a knuckle sandwich.


Subject to questions… - Posted by Jeff T.

Posted by Jeff T. on October 09, 2002 at 21:10:09:

If I take over a property “subject to” the sellers existing mortgage, and I see to it that the payments are made on time, and by the grace of god the lender does not exercise his “due on sale” clause, how in the world do I get the 1098 form from the mortgage company in order to deduct the interest on the loan that I am paying. It cannot be mailed to me, because that would trigger the due on sale clause. Is it mailed to the former owner at the residence where I now possibly have tenants, or better yet, how can I sell a property that is not actually in my name, the mortgage is not in my name, and last but not least the security/warranty deed is not in my name----or is it??? Somebody please help me to understand this sub-2 financing–it really sounds great if and after I get some of these “basic” questions answered.

Thanks in advance for any and all input,

Jeff T.

Re: Subject to questions… - Posted by Bob In Indy

Posted by Bob In Indy on October 09, 2002 at 21:40:28:

Sounds like your paranoia level is pretty high.
We Get the deed. Meaning the seller deeds us the property…or at least deeds it to our Land Trust.
We create a document that the seller signs and send it to the mortgage company. Yes, we send it to the lender, informing that the seller has select our management company to make the monthly payments. No due on sale clause is triggered. Watch out for the misconception that the dos is ‘triggered’. Lenders want payments, not homes. Just keep the payments current and you should be fine. As far as the 1098, the notice to the lender states that all paperwork concerning the home should be sent to us. We also have a limited power of attorney, should we need it. Rarely do we.
Hope this helps.

Re: Subject to questions… - Posted by Jeff T.

Posted by Jeff T. on October 10, 2002 at 08:27:47:

Hi Bob,

Thanks for your input-and yes, the paranoia level was pretty high!! I would like to get started with the sub-2 investing and still have a few questions…

  1. How (and I realize that you think this probably is naive) can someone (seller) deed their home to another person/company (investor), not even know if the payments are, in fact, being made, and sleep at night with their name/credit on the line if the house is foreclosed??

  2. Can the paperwork be completed at a “table” closing or do you have to do a traditional closing at the attorney’s office, ect…??

Thanks for the education,

Jeff T.

Re: Subject to questions… - Posted by GL(ON)

Posted by GL(ON) on October 09, 2002 at 21:45:25:

Do you register the deed, or some other instrument?

Re: Subject to questions… - Posted by Bob in Indy

Posted by Bob in Indy on October 10, 2002 at 09:32:48:

1)The definition of a sale is when the seller deeds the home to another. So, they expect to get the home out of their name. If the seller can’t sleep at night, we tell them “Look if this deal makes you uncomfortable, don’t do it…we don’t need your home.”
I also tell them that I’m not leaving town because of their home…I have too strong a reputation and too big a business. Credibility is important. If the seller is still concerned, they can check on the payment status, via telephone. If they are really nervous, I can make checks out to the lender and forward them to the seller, so they can make them…this has never happened, but I’ll offer it.
2)We do kitchen table closings. I bring a notary. It takes about 30 minutes.
Hope this helps,
Bob Meister

Re: Subject to questions… - Posted by Bob in Indy

Posted by Bob in Indy on October 10, 2002 at 08:57:59:

You need to obtain a course on how to do these deals.
Yes, we ‘record’ the deed at the courthouse. This gives notice to the world that the home has been transferred into a Land Trust. The initial beneficiary is the seller. All remaining documents are not public information.
Hope this helps.
PS. By the way, after doing a couple of deals this process is pretty much a ‘cookie cutter’.

Re: Subject to questions… - Posted by Jeff T.

Posted by Jeff T. on October 10, 2002 at 11:26:13:


Thanks for all of your help with the information you have provided. In this day and time refreshing people with great attitudes such as yourself are a rare commodity. I would like to know that in the future I could email you with updates, opportunities, and yes, probably more questions from time to time. You really seem to know your business, and believe me, I have been reading this forum for a long time, you are one of the few that do not mind helping others out in search of their own wishes and dreams!!

Thanks and keep in touch,

Jeff T.

Re: Subject to questions… - Posted by bob

Posted by bob on October 10, 2002 at 12:06:38:

I bought Bob’s course & did my 1st deal & made a quick 20 grand!!!

Yea BABY… Thanks for the help!

Re: Subject to questions… - Posted by Mike

Posted by Mike on December 19, 2002 at 09:20:30:

Is anyone responding to these? My question is do these deals really work in a sellers market. Houses here are going for more than asking price. Bidding wars are common here. Is it likely I will find someone to deed me their house in this kind of market?
Hoping you will respond. Thanks