What Happens to a Seller’s Credit in a Subject To Deal?

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  • Опубліковано 8 лют 2025
  • In this video, Pace Morby breaks down what happens to a seller's credit when they sell their property subject to. He explains different scenarios that might occur when a seller is going through pain and cannot continue making payments. Pace talks about things to take into consideration regarding low equity situations and foreclosures.
    Pace describes an example of a seller with low equity and a seller who is in pre-foreclosure, and sells their property subject to. What happens to the seller's credit? Foreclosure dings a seller's credit, but a subject to deal will fix the seller's credit since the buyer will make the mortgage payments. It's smart to remember that the seller needs to confirm that the buyer will cash flow so that payments will be made.
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    ❎ I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a UA-cam video for entertainment purposes ONLY ❎

КОМЕНТАРІ • 21

  • @JJDouble
    @JJDouble 11 місяців тому +4

    Just bought a sub to deal this week and had a 48hr close. There are deals to be had!

    • @DiqaunColeman
      @DiqaunColeman 11 місяців тому

      Huge congrats!!! Did you close through a title company??? If so, that's a super fast turn around time/close.

  • @lorenzostevens251
    @lorenzostevens251 11 місяців тому +1

    Amazing value as always Pace!

  • @dawnhale-harvey4072
    @dawnhale-harvey4072 11 місяців тому +2

    This information is so needed! Thank you 🙏🏽

  • @pros1perify
    @pros1perify 11 місяців тому

    You are such a good teacher Pace, thank you for this refresher. I would like to know more about expired listings. Thank you

  • @ritahutchins2478
    @ritahutchins2478 11 місяців тому +4

    What happen with SubTo Seller down the road if the seller wants to buy another house? Will the seller qualify for another mortgage loan because he/she still has the credit and debt into the previous home that he/she sold to as SubTo per mortgage company?

    • @stackadolla23
      @stackadolla23 11 місяців тому +4

      You’re referring to the conflict that occurs from the sellers debt to income ratio. If the person has enough income to support the debt balance than they’ll be fine. But let’s just say they do not have the income to support the debt. (Which is most likely the case) the buyer could show proof using a payment services company that the debt is being paid by another party.

  • @alvindecker8817
    @alvindecker8817 11 місяців тому +2

    This is what I am Looking to my first Dill this way thank you 😊😊

  • @maziarmoini5767
    @maziarmoini5767 6 місяців тому

    Would you please explain what’ are the contents of documents “ all inclusive deed”?

  • @MgtowRubicon
    @MgtowRubicon 11 місяців тому +1

    When the Seller wants to sell his property and get a new loan for his next property, he will be concerned about conveying title subject to the existing debt that stays on the property and in his name. You can explain the benefits of a wrap-around note. If the seller rented out his property, then he could only claim about 70% of the rental income for covering the existing debt. That may not leave enough other income to qualify for a new loan. However, when selling the property with Seller Financing and a wrap-around note, the seller can claim 100% of the note income to cover the existing debt and to qualify for a new loan.

    • @angelaaaaa2
      @angelaaaaa2 11 місяців тому

      Could you go into more detail about this please?

  • @michaelreedii8825
    @michaelreedii8825 11 місяців тому

    Pace, we need the info on the All Inclusive Deed please

  • @reggiemartinez4324
    @reggiemartinez4324 11 місяців тому +1

    Where does the money come from for the payment? Do you put a renter in the house, what if you don’t find a renter who pays the mortgage?

    • @furygaming180
      @furygaming180 11 місяців тому

      Check vacancy rate in an area and also rent rates. Always set aside some $ and 20% on whatever your cash flowing for vacancy/maintenance.

  • @xavierguerrero2712
    @xavierguerrero2712 11 місяців тому

    What’s up Pace, I Think your content is life changing and I plan on using creative financing to buy my family our first home. It would be my first deal though and I feel so unprepared and scared and wanted to ask how I can find the right resources to be able to make a deal happen. ie. how to set up a purchase and sale, how to set up escrow, how to set up the other necessary paperwork’s needed for a hybrid sub2 seller finance. I don’t have a budget for lead generation so I am using preforclosure data I found at the county records to generate my leads and hopefully create a win win situation with a seller.

    • @PaceMorby
      @PaceMorby  11 місяців тому +1

      Hey bro! Have you joined the free Facebook? You can squad up with leaders in there who can help you through your deal: paceapproves.com/freefb-ytc

    • @xavierguerrero2712
      @xavierguerrero2712 11 місяців тому

      Thank you Pace I appreciate it

  • @jpstreet5660
    @jpstreet5660 11 місяців тому

    Lovee it !!

  • @ShifuDon
    @ShifuDon 5 місяців тому

    How do you get the phone number of the seller? Thanks in advance :)