How to Buy Houses "Subject To" - Real Estate Investing Training Video

[showem88]

Yep, this is GOOD! Thank you for sharing! Good Stuff!

[HJosephD]

How do you pay without alerting the lender that someone else is making the payment?

Joseph

[localmentor]

@HJosephD - we automate all our payments via online banking...but I don't think that's what you really want to know. The lender has some 8/hr employee opening up payments and posting them to accounts. There's no checks and balances for "did the name on the check match the name on the loan". Lenders will typically get a "red flag" if changing of the insurance is not done properly.

[speedstick257]

Why don't you live in MI ... T_T

[MicrowaveDisplaycom]

My assumption is that the buyer (new deed holder) will not be able to claim mortgage interest on his tax return, but the seller still will, since the mortgage is still in his name, even though the title / deed is not.

My reading is that the interest deduction may be taken by whoever is responsible for the loan (promissory note), and the seller still is.

Is that correct?

[localmentor]

@MicrowaveDisplaycom - you can claim the deduction for payments you have made. The lender reports it under the SSN of those who qualified for the loan, but it's their right, not obligation to take it. If you make the interest payments then you can claim the interest deduction. Talk to your CPA about it.

[BIGTOPCHICAGO]

how do you go over the due-on-sale clause .

[MicrowaveDisplaycom]

You don't "go over" the due on sale clause, you simply ignore it & make the monthly payments.

Mortgages say that the mortgage holder HAS the right to declare it due in full if the title is transferred (such as in a "subject to" transaction) but there is no legal or contractual requirement for the seller to TELL the mortgage company a transfer has taken place.

As long as payments are made and stay caught up until the property is paid off - by resale or payoff - then there should be no problem.

[localmentor]

It is possible. You need to know and abide by your state's laws. For instance in CO, you have to use a state approved disclosure contract and give them 3 days to cancel in writing.

You would catch up back payments, make the loan current and then have time to rent, sell, lease option or even retail to end user.

I would NOT suggest you ever do a lease back.

I prefer doing sub-2 deals on houses with current A paper loans.

[dirkdigla1914]

Question, Is it possible to do a "subject to" deal on a foreclosure, or is that type of strategy strictly for non-distressed properties?