What Do Lenders Require If It’s Your First Subject To Deal?

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Alright, so guys, I’ve got a question here from the YouTube comments. This question actually is what do lenders require? If it’s your first subject to deal? I don’t actually understand this question because that means you don’t understand what subject to is, guys. I’m not going to lenders when I do a subject to deal, okay, I’m not asking permission to buy a house subject to I don’t go to a lender now where you might be asking the question, and I might be a little bit confused here. Let me do a little screen record.

Let me break this down for you. Just real quick. If I’m buying a house from a seller, and the seller has a loan with Wells Fargo for $300,000, and I go, Hey, seller, I’ll take over that house and I’ll take over those payments, transfer the ownership to me and keep that mortgage in place, the House still has a $300,000 mortgage on it, because it didn’t go anywhere. I didn’t pay it off. I didn’t apply for anything. I didn’t call Wells Fargo. I didn’t ask for permission. I don’t need Wells Fargo’s permission to own that property. Even though my name is not on the mortgage.

That’s what subject two is subject to is the process of buying a house without cash credit or credentials, meaning I can just transfer the ownership into my name, but keep the mortgage in the seller’s name from people that are brand new to this. It’s confusing, but go to previous videos of ours will link some of those down below like what is subject to Okay, so your question of what do lenders require if it’s your first subject to deal is kind of not the greatest? It’s a great question.

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But it really isn’t an educated question because I don’t ask lenders for permission to buy a house subject to I just buy a house subject to I go to a title company, they transfer ownership, I could do it myself as well, I could go down to an actual recorders, office County Recorders Office, there’s one in every county and I could transfer a deed from a seller obviously with a contract over to my name for like $17 I don’t think a lot of people know that I can go down right now to Maricopa County Recorders Office or deeds.com.

And if I and the seller agree that the seller wants to transfer their the name of the ownership of their property into my name, that’s called a subject to I just bought their house subject to its subject to the underlying mortgage, which means I now own the owner, but there’s still a mortgage in place. So I literally log into their mortgage, I literally log into their Wells Fargo account, and I make a payment to a mortgage that is attached to my house, it is so hard for people to understand this, the mortgage does not tell you whether you’re the owner or not, the deed does. So as long as I have the deed, I’m the owner.

Now, where I think maybe your question might be coming from is let’s say that I buy the same house for $300,000. And I’m going to do what we call a sub tail, which means I buy it subject to and I sell it retail, right? So I’m going to fix and flip a subject to deal it means I take over this house $300,000 And then what I’m going to do is I’m going to add, you know, $50,000 in renovations to it. Well, guess what? I need to go get a loan for that. $50,000 If I’m a broke ass, right, and it’s okay, I’ve been a broke ass before I know what it’s like.