Should I Record The Deeds On My Subject To Deals?

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I’ve been getting the question a lot and actually running into this situation for myself. And the question sis, “Should I record the deed when I do a subject to deal.” Let me first explain what a subject to is. A subject to is where a seller says, “I’ll give you my property if you just take over the payments on it.” And so, let’s say they, it’s $150K property. They owe $140K on it and you’re going to just start, you’re going to take over their $140K loan. And you’re going to make payments on it. You’re not going to qualify for that loan. You’re not going to apply for that loan. All they’re going to do is deed you the property. So now you become the owner of that property, but you’re not on the loan. Your name’s not on the loan, but you are, you have agreed to make the payments.

And you need to make those payments. If you’re going to take over that property, and you don’t make the payments, and you don’t give the property back to them if you get into a situation where you can’t make the payments, then you’re committing fraud. So make sure that you can make the payments and follow through with what you tell them you can do.

I’m not an attorney, I can’t give legal advice, you know, don’t even play one on TV, you know, so, if you need legal advice on this, talk to an attorney and get their opinion and then you can decide for yourself how you want to proceed.

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3 Comments

  1. Brutus Empire says

    do you have any subject to contracts??

  2. Juanco_"C.E.O." says

    This seems so complicated, why go this route? So if you do a subject to, you have to find a tenant right away to make payments on the property or else it will come out , out of pocket. What if you can't find someone to rent it to that quickly. What's the best exit strategy for subject to deals?

  3. Earthy Springfield says

    Always record your deeds if you can, it protects your position.

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