Posted by ToolBar_SC on July 12, 2002 at 14:59:27:
I don’t know where you’ve read what you’ve described here but the bottom line is: If you get a loan in your name it will stay in your name until the loan is retired or the creditor agrees to the substatution of liability.
If you sell Subject To and your buyer defaults the creditor with the defaulting loan doesn’t care at all about your buyer. They are looking to YOU, the one who they entered into a contractural agreement with, for payments. And it’s your credit ruined if the loan defaults not your buyers.
Now as far as getting additional loans, yes a letter explaining the ‘Subject To’ deal(along with payment records, etc…) will be taken into account when determing wheither or not you will qualify for an additional loan.
Hope this helps