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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: buying "subject to" means.... Posted by Ward-CA- on January 09, 2002 at 9:15 PM In Reply to: buying posted by D Taylor on January 09, 2002 at 5:38 PM : We have a house with two mortgages. House is going for sheriff sale due to second mortgage being in default. We were told the second mortgage holder is going to get the house "subject to" the first mortgage. Does this mean the second mortgage holder will pay off the first and become the only mortgage holder? If not what does "subject to" mean? =•=•=•=•=•=•=•=•=•=•= Taking title to property “subject to”, means that the buyer is getting title to property that’s burdened with an already existing lien. In your case it is predicted that the opening bid of the foreclosing lender in second position won’t be overbid by anyone. Absent any other bidders the lender’s bid will be the highest and so they will take title to the property in lieu of being paid off at their foreclosue sale. Since their lien was in 2nd position it’s foreclosure won’t have any adverse effect on the senior 1st, leaving the 1st intact and unpaid. Thus the new owner of the property, who was the lender on the 2nd, will now own the property with the undisturbed 1st and will ultimately have to pay the 1st off—either month by month or in a lump sum (if they ever refinance the property or if they ever resell the property). Follow Ups: Re: buying D Taylor 4:48 PM, 01/11/02 (2) Re: If a foreclosure sale deficiency occurs. Ward-CA- 6:31 PM, 01/11/02 (1) Re: If a foreclosure sale deficiency occurs. D Taylor 6:25 AM, 01/12/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : We have a house with two mortgages. House is going for sheriff sale due to second mortgage being in default. We were told the second mortgage holder is going to get the house "subject to" the first mortgage. Does this mean the second mortgage holder will pay off the first and become the only mortgage holder? If not what does "subject to" mean? : =•=•=•=•=•=•=•=•=•=•= : Taking title to property “subject to”, means that the buyer is getting title to property that’s burdened with an already existing lien. : In your case it is predicted that the opening bid of the foreclosing lender in second position won’t be overbid by anyone. Absent any other bidders the lender’s bid will be the highest and so they will take title to the property in lieu of being paid off at their foreclosue sale. Since their lien was in 2nd position it’s foreclosure won’t have any adverse effect on the senior 1st, leaving the 1st intact and unpaid. : Thus the new owner of the property, who was the lender on the 2nd, will now own the property with the undisturbed 1st and will ultimately have to pay the 1st off—either month by month or in a lump sum (if they ever refinance the property or if they ever resell the property). Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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