What is Subject To?

Many gurus ask you to spend up to $5000 or more just to learn how to handle this simple type of investing. What I have never heard them do is to tell the downside.

Simply put this means "subject to the existing loan". In other words, assumption. The difficulty is that most mortgages originated in the last 15 years or more have not been assumable. This technique involves the use of the Quit Claim Deed to transfer control (ownership) of the property from the mortgagor (homeowner) to a buyer.

You will often see this advertised as "owner financing" when there is an existing mortgage on the property.

The downside is that this type of transaction always violates the Due On Sale Clause (acceleration clause) in today's conventional mortgages.

For more information on this type of transaction and any type of real estate investing visit REI Desktop

Real Estate Investment Financing