Subject-To Deals: The Best Time to Start

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If you’re an investor looking for creative ways to acquire property with minimal investment, I highly recommend studying Subject-To deals. Now is the perfect time to start exploring this financing method that allows you to take over the existing loan on a mortgage without putting your name on the mortgage.

What better time could there be then RIGHT NOW to take over mortgages. There are tons of mortgages that are between 2.5-4%.   Imagine the low monthly payments compared to current rates!  These should be a key strategy right now for investors!

Some people mistakenly believe that Subject-To deals are illegal due to the “due on sale” clause found in most mortgage contracts since the 1970s or 1980s. However, this is a contractual issue, not a legal one. While the loan holder could enforce this clause, they would have to incur their own legal costs to do so. (See my Subject-To contracts in my course HERE) Subject-To deals are a form of owner financing, where the investor takes over the seller’s existing loan instead of applying for a new one. This saves time, money, and the hassle of qualifying for a new mortgage. By adhering to the terms of the original loan contract, investors can take ownership of the property without putting up much of their own money.

There are several things to consider when you structure Subject-To deals. The main one involves making monthly payments directly to the lender using the original loan account number, mailing address, and due date. As long as the payments are made on time, the lender is less likely to call the note due using the “due on sale” clause.  Also, the insurance policy needs to name the previous owners (with the exact same names as was on the loan) as additional insured.  The lender must also show on the insurance policy as the lender.

Investing in Subject-To deals offers several advantages. Firstly, it allows you to take ownership of a property without significant upfront costs. Additionally, you avoid the time-consuming and expensive process of obtaining a new mortgage. By taking over an existing loan, you eliminate loan fees and other costs associated with a new mortgage. Read more on Getting Properties with “Subject-To” Financing HERE.

There are reasons why lenders are unlikely to call the loan due as long as it remains current and your insurance is done correctly. Legal costs and government scrutiny of nonperforming loans discourage lenders from taking back properties. 

If you’re looking for creative and low-cost investment techniques, Subject-To deals are worth exploring. The real estate investment market offers ample opportunities for profitable deals, and I share my knowledge and success with others to help them attain financial freedom.

Now is the best time to start studying Subject-To deals and take advantage of the benefits they offer in the real estate investment market. Get started with my Subject-To course HERE!

Watch my full Subject-To Presentation for FREE here!

As always, I’d love to hear your questions or success stories. Connect with me here:

To Your Success,

Wendy Patton

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