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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Taking title "subject to" existing financing... Posted by Ward-CA- on July 15, 2003 at 10:35 PM In Reply to: Is EPA possible in Illinois? posted by Michael on July 14, 2003 at 12:32 AM : I know that most of the discussions here pertain to California, but I would like to know if EPA is possible in Illinois? I might be missing some things, but here is what I am unclear about: : If the property has equity, and let's say there is a 1st mortgage on it. If the seller sells the house, doesn't it require the 1st mortgage to be paid off since the seller no longer owns the house? How does it work? -=-=-=-=-=-=-=-=-=-=- Michael, I think what you mean to ask is can one buy a house from an owner in default in IL, prior to the auction sale? And the answer is yes. There’s no legal requirement anywhere that a sale of a property necessitates the payoff of any existing financing. The new buyer could enter into a formal, written assumption agreement with the existing lender and take over the loan, or with the cooperation of the seller, she could just continue making payments to the existing lender without notification that a sale had taken place. The need to take over an existing loan occurs when you own 5 properties. At that point most lenders won’t make you another loan, so you’re forced to find ways around the loan roadblock. And that’s accomplished by buying properties and convincing the sellers to leave their existing loans in place. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I know that most of the discussions here pertain to California, but I would like to know if EPA is possible in Illinois? I might be missing some things, but here is what I am unclear about: : : If the property has equity, and let's say there is a 1st mortgage on it. If the seller sells the house, doesn't it require the 1st mortgage to be paid off since the seller no longer owns the house? How does it work? : -=-=-=-=-=-=-=-=-=-=- : Michael, : I think what you mean to ask is can one buy a house from an owner in default in IL, prior to the auction sale? And the answer is yes. : There’s no legal requirement anywhere that a sale of a property necessitates the payoff of any existing financing. : The new buyer could enter into a formal, written assumption agreement with the existing lender and take over the loan, or with the cooperation of the seller, she could just continue making payments to the existing lender without notification that a sale had taken place. : The need to take over an existing loan occurs when you own 5 properties. At that point most lenders won’t make you another loan, so you’re forced to find ways around the loan roadblock. And that’s accomplished by buying properties and convincing the sellers to leave their existing loans in place. 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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