From: "Randy Cox" 
Newsgroups: misc.invest.real-estate
Subject: Re: Need advice on getting rid of rental.
Date: Wed, 1 Jun 2005 19:45:57 -0500


"Carol"  wrote in message 
news:HHine.962$IE7.873@newssvr21.news.prodigy.com...
>
> Selling the unit "Subject To" does not relieve the seller from the credit 
> liability which is the main objective here.
>
Right, which is why I said it was a terrible way to sell a house.  It is 
better than letting it go to the bank, but not much.  Usually, sub2 buyers 
want it for free or get out of town money.  They want title, and  they may 
or may not make payments.  The good ones do, but there are enough bad ones 
to cause Texas and N. Carolina to rethink their laws....pending now.

Sub2 is a last ditch effort of a distressed owner to trade inevitable 
foreclosure for potential foreclosure.   Not every distressed owner has 
access to thousands of dollars to correct upside down notes.  I know some 
sub2 buyers that have never defaulted on a deal, even when a couple of the 
mortgage companies called the full note due.  Their high integrity doesn't 
mean they won't default in mass if a real estate bubble bursts and the 
prices fall below their fairly thin equities.  There will be mortgage 
companies default as well. Life is full of risk.

Randy R. Cox