Subject To Buying A Home With No Cash

Subject To: Buying a​ Home With No Cash
You want to​ buy a​ home, but you have very little money saved .​
What are your options?
Traditional mortgages don't always require large down payments .​
If you have a​ good income, stable job and good credit, you should easily be able to​ get a​ traditional mortgage, even without a​ down payment.
However, if​ your credit is​ bad, there are still plenty of​ options for getting into the real estate market .​
Despite the mortgage-due-on-sale clause, sometimes a​ buyer can take over payments on an​ existing mortgage .​
It is​ very unlikely a​ bank will demand the full mortgage, and risk ending up having to​ deal with a​ foreclosure, if​ monthly payments are being made on time .​
These sales, called subject to​ sales .​
In these cases, the seller will require a​ second mortgage to​ get their equity out of​ the home .​
If there is​ little or​ no equity in​ the home, a​ contract can be arranged wherein the buyer agrees to​ pay off the sellers mortgage in​ a​ set number of​ years when they in​ turn sell the home .​
Often, this deal is​ made with the promise of​ a​ percentage of​ the buyers profit going to​ the seller when the home is​ sold again .​
These contracts allow a​ highly motivated seller to​ walk away from their mortgage and either easily get a​ second mortgage, or​ start fresh, but receive a​ check in​ an​ agreed upon number of​ years for a​ percentage of​ the homes re-sale .​
As a​ buyer, you can assume the mortgage, either live in​ the home or​ rent it​ out, then when it​ has gained equity, sell it​ and only then give the person you bought it​ from a​ small sum .​
While subject-to sales sound complicated, they can really be a​ great deal for both buyers and sellers with little money.

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