REAL ESTATE
You have been lied to all your life . You don’t need a big down payment or excellent credit to by a house you can take over another’s home owners payments . This is called Buying the house subject to.
What is “Buying Subject To”?” Buying subject to” means purchasing a home with the existing mortgage still in place. Instead of the seller paying off the mortgage at closing, the buyer agrees to take over the seller’s mortgage payments. The buyer is not personally assuming the loan but rather continues making payments on the existing mortgage while the loan remains in the seller’s name. How Does It Work? Seller’s Mortgage Stays Active: The original mortgage remains under the seller’s name, but the buyer takes over the responsibility for making monthly payments. Part of the Purchase Price: The unpaid balance of the mortgage is factored into the purchase price. For example, if a house sells for $300,000 and the existing mortgage balance is $200,000, the buyer would be responsible for paying off the mortgage balance of $200,000 and would need to come up with $100,000 to complete the purchase. Why Would Sellers and Buyers Choose This? For Sellers: It allows sellers who are underwater on their mortgage or facing foreclosure to transfer responsibility without having to pay off the loan. It also offers a faster sale since buyers don’t need to secure new financing. For Buyers: Buyers can benefit from assuming a loan with a favorable interest rate that may no longer be available. They may also avoid some of the closing costs and time involved in getting a new mortgage.
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