๐ท๐๐๐๐๐๐ ๐ ︎: Subject To Real Estate
Your real estate investment career might get stalled if you have poor credit. Even if you have the cash to purchase a home or sufficient income to handle a mortgage loan, poor credit could prevent you from securing a mortgage loan. Many investors turn to subject to real estate deals to purchase properties without securing a mortgage. Subject to real estate is also a practical option for those who need to buy/sell a home quickly and cost-effectively. What Does Subject To Mean in Real Estate? In real estate, subject to means that you’re buying a home that’s subject to an existing mortgage . Under normal circumstances, what happens when a homeowner sells a property in which the mortgage hasn’t been fully paid off? Most often, the proceeds of the sale are used to pay off the remaining mortgage, and the seller pockets the rest. Or, the buyer may take over the remaining mortgage, a process called “mortgage assumption.” Subject to is a middle-ground between both option...