Subject To Existing Financing Forms and Checklist w/ Directions
This basically means that you, as the buyer, unofficially take over the seller’s existing mortgage payments. The mortgage still officially stays in the seller’s name, and the mortgage lender stays unaware of the new financial arrangement (or voluntarily looks the other way). As the buyer, you have no personal or legal liability, relatively speaking, to pay the mortgage since the original lender is not involved. So, it is kind of like taking over a mortgage on the honor system to save money on buying a home.
Forms Included: Contract Directions & Examples, Stating you are buying the house Subject to the Existing Financing, w/ Additional Terms. Forms Include: Checklist with Directions and Reasoning, Authorization to Release Information, & Power of Attorney. Other forms you will need are Contact to Purchase and a Land Trust Agreement. After al this you have everything you need to buy a home subject to the existing financing.
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