How to Buy Real Estate with NO Mortgage.

That’s right, you can actually buy real estate without getting a new mortgage. This technique is called a “Subject To” purchase and it is real and completely legal.

Now, let me tell you about it.

“Subject To” is a real estate investment technique which allows a buyer to purchase a property from a seller keeping the existing financing in place. This means that the seller agrees to allow the buyer to continue to make the mortgage payments on his/ her behalf.

This is also known as Assuming a Non Assumable loan.

I bet you’re thinking… “Why would a anyone do that?”

With the current condtion of the real estate market coupled with the credit crunch it has become increasingly difficult to sell a house. This technique works best if a person needs to sell, or they don’t need too much money uip front.

Some of the benefits are:

• Deals can be closed in as little as ten days.
• You don’t need to qualify for financing.
• Closing costs are generally minimal because there are no lender fees.

There are some risks in “Subject To” deals as well:

• Seller is still responsible for the underlying mortgage.
• Lender can activate the “Due on Sale” clause.
• If the seller files for bankruptcy it is possible to lose the property.

So…now the big question… Do you want to know more about “Subject To’s?

What do you want to know?

Please post your comments and questions on this page.

P.S.- If you know anyone who is interested in Real Estate investing, please forward them this link:

http://jonthansblog.wordpress.com