Q: What are the risks of doing a "subject to" sale of my house to a real estate investor group?
I own a home and am currently making all my payments on time. My goal has been to remodel it and sell it. I have since found I do not have the time to do so. I found a real estate investment group whom are interested in doing a "subject to" agreement to take over payments, fix it up, and then sell it. In doing so they would get any and all profit which I am ok with.
What are my risks and do I have any legal recourse if they do not uphold their end of the contract?
A:
You should contact and attorney to review the proposed contract with you before you sign it.
Generally, a Subject Too deal means that you sell the property (they own it) but they don't replace your mortgage so the mortgage stays in your name. The Seller essentially carries all of the risk in this type of transaction.
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