What does subject to existing mortgage mean?
Then, which is an advantage of a subject to mortgage?
Lower Barrier To Entry: Subject to financing strategies allow buyers to acquire properties without committing to the large down payments we have grown accustomed to. The initial payment doesn't need to be 20 percent, as one could expect if they wanted to acquire a loan without private mortgage insurance.
Also, what is a subject to transaction? A subject-to transaction is a creative finance technique where a buyer is able to take title to property without obtaining a loan in the traditional manner. The transaction usually involves the seller of the property leaving his or her existing financing in place.
Secondly, what does Subject to mean in real estate?
"Subject-To" is a way of purchasing real estate where the real estate investor takes title to the property but the existing loan stays in the name of the seller. You can approach the homeowners and explain to them that you are interested in purchasing the property "Subject-To" the existing financing.
What does Subject to mean in a deed?
Selling all or partial interest in real estate when there is a mortgage will be "subject to a mortgage or deed of trust." This means that the property has a recorded lien against it, placing a minor "cloud" on the title.