Let A.S.F.E. Ministries Buy Your House

Subject To is a viable and legal way of purchasing and transferring real estate where our company A.S.F.E. Ministries LLC takes title to the property and the existing loan stays in the name of the seller in other words, the sale is completed Subject To the existing financing. A.S.F.E. Ministries now controls the property. We take on all responsibilities of ownership and make the mortgage payments on the sellers existing mortgage.

The answer is yes. The HUD one is a standard form that title or escrow companies and attorneys use to build settling statements, please reference lines 203 and 503. Note that this is a Code of Federal Regulations CFR document on page 396. The second paragraph states line 203 is used for cases in which the borrower is assuming or taking title subject to an existing loan or lien on the property.

Many sellers consider utilizing the subject to method in low or no equity situations as it allows them to relinquish ownership of the property without the need for additional funds, or having to write a BIG check at closing, depending on the seller's mortgage balance. This method may result in greater financial gain for the seller compared to a traditional sale. Additionally, it enables the seller to move on from the property as they are no longer responsible for expenses such as repairs, maintenance, utilities, taxes, insurance and HOA fees. The seller's credit score may also improve as a result of timely payments being made towards the mortgage.

A.S.F.E Ministries LLC engages the services of a third party loan servicing company which is responsible for facilitating the monthly mortgage payments. All mortgage payments are set up to occur five days before the mortgage due date. Additionally, the sellers have the option to elect to receive notifications on a monthly basis letting them know and indicating that the mortgage payments have been fulfilled.

While we've never missed a payment in our 17 year history, we take precautions to ensure everyone involved is secured. We include a performance clause in our paperwork agreements, which ensures that in the event of a default by us, the seller is able to repossess the property without a formal foreclosure. If a scenario like this ever occurred, and we assure you that it won't, but the seller would greatly benefit from any and all payments we made towards the loan, in addition to the improvements made to the property and appreciation in the property's value.

In addition in all of our Elderly Residential Care Homes, we install fire alarm and water sprinkler systems at an average cost of $25,000, and custom lift chairs on the stairs at a cost ranging from $1,000 to $4,000. Be assured we are not in the business of making these normal investments in a home and then not pay the mortgage.

Our insurance agent will be responsible for replacing the sellers current policy with our policy, which includes the addition of the sellers as additional insured parties. Our company will be responsible for all things related to ensuring the property and is entitled to any claims. We will take the necessary steps to transfer utility services into our name how long does the mortgage stay in the seller's name? The short answer would be for as long as we can keep it. We advise sellers and agents to anticipate maintaining the seller's names on the mortgage until the mortgage balance is fully settled. However, sometimes the holding period is around seven to 10 years. In such cases this allows us to benefit from a full real estate appreciation cycle. And if the interest rates are more favorable at that time, and better than the existing mortgage. In many cases, we will refinance at that time.

If the seller seeks to qualify for another home loan, THEY CAN, as the loan remains in the name of the seller, our timely payments made to the lender via the third party servicing company will be reported to the credit bureau positively impacting the sellers credit score. This can be very advantageous to the seller. In addition, the payments can be proven to be made through the servicing company by someone other than the seller. This serves as proof to new lenders underwriting department that the sellers loan was taken over Subject To by another party and will not be calculated to determine the sellers DTI ratio.