Info on "Subject To", Please!

Bump

hang in there we know the posse will see it soon. don't we ??

One thing no one ever addresses in "subject to" deals is the insurance. If you can find a way to get around the insurance, have the lender, property, and principals covered for loss and liability, and not have the lender find out the title has changed hands, I'd love to know about it. Otherwise, you're rolling the dice from an insurance point of view in a subject to deal, hoping nothing happens. When you do L/O, do you have the Seller change their policy from an owner/occupant to a landlord policy?

Ok Karen here we go..I have done subject too and I do not do an escrow because yes it will cause the mortgage company to know what you are doing. The easy way to do this is as follows: Find a property that has equity built into it or is close (worth 150 and owes 150k). Get the deed as well as a limited POA for that property, get a release to talk to the bank from the owner and finally a purchase agreement to take the property for what is owed. Do not record the property in your name but have everything notorized and give the old owner $10 to make it legal. Place the home on craigslist with owner carry with 10k? down. If the house is behind in payments you need to cover that as well in the down. Once it is current and fixed? you get the down (your profit) and use a servicing company to make the payments to the bank. Give the new owners three years to get a new loan and the old loan out of the old owners name. Done...If it goes bad you do it again and always make sure the payments are made... I just did a short sale wholesale the other day from one of these and made 35k....NOW GO GET SOME

So it is just like a L/O, except that you are having them sign over the deed and get POA? No recording of the deed at the courthouse?

Thanks so much for your help!

Karen

http://www.deangraziosi.com/node/10010

Some say to record but that put in in the old owners place (in a round about way) for the loan. It has worked out well for me not to do it..

What if there is a fire or an injury with a liability issue? How do you handle the insurance?

Yes, wondering what TRSD has brought up, as I guess one would want to cover all the bases. Nice to see you Karen!

Also see 'Randy 428' profile,(click 'track' above name) he's done Most of his deals "Sub2"

IF you need sub2 contracts and instructions let me know

Why would you think a subject to would be the best way to go?

I will PM you.

Karen

I am not thinking that I will want to do all my deals Sub2, but if a Seller is having financial problems, it is better to get the deed so that no other liens can be placed on the property after you have L/Oed it to a T/B.

As far as insurance, what I have done on L/O deals in the past, is still have the ins in the Sellers name and added our LLC as a loss payee I think that was what it is called) just as the mortgage company is. I am not sure if that is the best solution but that was what we did so that the bank was not flagged.

Karen

Wouldn't putting the property in a trust protect it from liens? Then you wouldn't have to worry about the DOS.