What is “SUBJECT TO” and Why is This So Trendy? – #20

The Strategy of “Subject To” is becoming more and more popular every single day.  Basically, this strategy works as follows:

When you find a property that has an affordable mortgage in place, it is possible to take title to the property subject to the existing mortgage.  The term subject to is meant to state that the current mortgage remains in place, even though the deed transfers to the new owner.

Many notes these days have what they call a “Due on Sale” clause, which basically means when the property is sold, that the note must be paid in full.  Larry discusses how this is not a law per se, yet agreement between lender and borrower.  In many cases, the bank will allow the transfer to happen, especially when they fear the current owner may default.

There are other instances where the banks will not allow the transfer of deed to occur without calling the loan due.  When a bank calls the loan due, they demand the full balance be immediately paid to the bank to satisfy the mortgage.

One of the benefits of attending Larry’s Never Step Into a Bank Again Bootcamp is that you will learn how to avoid using the bank at all.  When you avoid the banks, you can do more deals, with less headache and more profit.  Want to learn more?  Go HERE

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