Audra, thanks for excellent advice. The owners don't really get away from their mortgage & it's effect on their credit or the enormous risk of the non-legal assumer (buyer) trashing the property & defaulting on payments. The additional exposure to lawsuits from mortgage company, possible fraud charges & IRS consequences makes short sale or selling at a loss or bankruptcy look good. Scary stuff.

@AudraLambert

6 ай бұрын

You are 100% correct. Its too much risk!!! Scary stuff...thanks for watching!! People need to beware!! Happy New Year, btw!!

You are a class act. Thank you for sharing this. It's a true service.

@AudraLambert

6 ай бұрын

Ahhh...you just made my day!!! Thanks so much. Just trying to help people out!! Its scary out there!!

I won't name names, but there are several BIG names in real estate who have amassed small fortunes via "Subject To" deals. And, they are only too happy to teach it to new investors. I always questioned how this could be legal?! Thank you!

@AudraLambert

6 ай бұрын

Very welcome. Not sure why this has been over looked for so long. Not cool!

My sister was a victim of this, I call it abuse, during the recession - “adjustment phase” and lost her home.

Lots of good advice. Thank you! Sorry you went through all of that, but you're helping a lot of people by sharing your experience.

@AudraLambert

5 ай бұрын

Thanks so much...yes, dealing with IRS was a night mare! Really appreciate your comment.

So impressed that you have our best interests at heart! Thank you.

@AudraLambert

5 ай бұрын

So glad I could help!! Appreciate your comment...means a lot.

Wow! Thank you for your excellent information!

Thank you Audra, you've just earned my admiration and respect with your integrity. May God bless you and yours

@AudraLambert

3 ай бұрын

Thank you so much that means the world to me! I'm so glad that you got some value. I appreciate your kind words.

Thank you, Audra, so much for generously sharing your knowledge AND your very personal and hard won experience!! You are amazing!!!

@AudraLambert

6 ай бұрын

You are most welcome...and thanks so much for the compliment. It means a lot. Love helping people out:). Happy New Year to you!!

@lailaatallah1857

6 ай бұрын

@@AudraLambertThank YOU! I’ve only recently discovered your channel and your videos are just excellent! Happy 2024! 🎉

@AudraLambert

6 ай бұрын

@@lailaatallah1857 Ahhh...thank you, you just made my day;)

Thanks for hard work and honesty

@AudraLambert

6 ай бұрын

You are very welcome...appreciate your comment! Really means a lot!!

"Fraud" is such a harsh term; we prefer the term "alternative purchasing strategies". (Sarcasm).

Stay away from “subject to” I get these calls all the time… good video. ❤

You are most def a class act - We LOVE you

@AudraLambert

4 ай бұрын

Wow...thanks so much!! Appreciate it!!

I agree Audra - run, don't walk away from anything that sounds too good to be true because it just might catch up with you.

@AudraLambert

6 ай бұрын

Agreed! It did to me. Thanks for your comment. ❤

Great advice!

@AudraLambert

5 ай бұрын

Glad you think so! Appreciate your comment!!

Hi Audra My experience with a subject to was a $50k lose over a 2 year period where even the person stop paying lawyer was trying at gain ownership of a brand new build house. I would stay away from that type of business forever

@AudraLambert

4 ай бұрын

Albert, thanks so much for sharing. I completely agree with you!!

Thanks for sharing..

I love your laugh. 😊 Dodgy sounding stuff is actually dodgy. Who would have thought it? 🙄

@AudraLambert

4 ай бұрын

Ahhh...thanks so much. I love to laugh.

Very informative.

@AudraLambert

3 ай бұрын

Glad you think so!

Thank you!

@AudraLambert

2 ай бұрын

You're welcome!

Could you do a future video on what a buyer can do (if anything) when major issues pop up after you've moved into your new home. Things like faulty plumbing,leaks, roof issues etc .

@AudraLambert

5 ай бұрын

Will do...great topic.

@kelleywyskiel3478

4 ай бұрын

@@AudraLambertyes please. It’s been 12 years here but we had major literally a 10k minimum paid in repairs and the seller literally would tell us to prove it and sue him. I mean… he even showed up and dug up a Japanese maple from the landscaping, took several bags of landscaping stone etc… my husband just put up with it.

@AudraLambert

4 ай бұрын

@@kelleywyskiel3478 Holy Smokes. Not sure where you are located. You can always take the seller to small claims court. Not sure what your state limits are for small claims. Unfortunately if its more that the limit, you'd have to litigate...but that's expensive. Ugh..so sorry.

My mortgage company says they don’t care who owns the property as long as we get our money. We see it all the time. I’m thinking 🤔 wait what?

@AudraLambert

3 ай бұрын

No No...very very bad. By the way, the person you are talking to at the mortgage company is a nobody...they can't make decisions, and have no idea what they are talking about.They are just the salesmen. Sorry..but I am just keeping it real. Trust me, the mortgage companies are highly regulated and getting its only getting stricter. Ugh..I hate hearing this. Thanks for sharing.

Please talk about pros and cons of taking back financing when selling a your property..

@AudraLambert

5 ай бұрын

yes, will do a video on this one. Great topic.

Key words: "unless it's an assumable loan." 6:46

@AudraLambert

Ай бұрын

That is correct! thanks for clarifying!

Are assumable mortgages still a thing? I remember hearing about them in the 1970's when interest rates were 12+ %

@AudraLambert

4 ай бұрын

Yes, there are still some assumable mortgages out there. I see a lot of VA loans that are assumable. Most mortgage companies do not offer this however.

such an arangement in the eyes of the law is fraud.

@AudraLambert

6 ай бұрын

Exactly!! Thanks for your support Oso!!

I actually bought a home in 1980 along those lines. If was called a land contract. The owner kept their mortgage in place, I put down money, and made payments to the owner for a year. After which I had to refi, and you know how high rates were in 1981. The broker that concocted the deal got their commission. I then obtained a second mortgage to obtain the refi which was recorded after the fact. What a bunch of hooey, but that home was on the market for a long time and the broker came up with this method to move the property.

@AudraLambert

6 ай бұрын

Well, at least you refinanced and got the property back in your name. So sorry to hear about the high interest rates. Curious, did you have title in your name when you first purchased the property? Thanks for your comment...very interesting. If a real estate brokers were involved in a "land Contract" where the mortgage company is being defrauded...they could loose their license. It is not the broker's job to come up with "creative financing" unless they have a license to do so. Sounds like you made it work. Ugh..this stuff is shady.

I thought you can only do sub-2 on a clear and free property.

I wonder how Line 503 is used on the HUD-1?

@AudraLambert

6 ай бұрын

I have no idea. Great Question! For those of you who don't know what line 503 is on the HUD-1: 'if the Borrower is assuming or taking title subject to existing liens which are to be deducted from sales price".

You did your part and researched this deal to the extent you felt it warranted and still got burned. Shame on whoever got you involved and stuck you with a fine that even predated your involvement. Good advice to stay away from things that seem even a little fishy or just WAY TOO HARD to stay in legal and tax compliance. Better to miss out on an honest to goodness good deal and stick to boring less lucrative options or just none at all 😢.

@AudraLambert

Ай бұрын

I echo your sentiment: if it sounds fishy run!

Why on earth are the lawyers representing the sellers facilitating this?

@AudraLambert

6 ай бұрын

So wrong!! They have attorney's present so that if relatives or loves one come back to protest about the arrangement/agreement for an elderly couple or individual family member (saying the elderly couple/individual didn't know what they were signing)...they can say there was an attorney present and explained the details thoroughly. The attorney is there as a witness too. Its shady. They are doing this so it minimizes disputes with the homeowner and/or family members who get word of this. Its a crime, truly! The lawyers representing the sellers should be disbarred, in my opinion. Not cool!

So my understanding is, as long as you notify the mortgage company of the sale, “all is good”, correct?

@AudraLambert

6 ай бұрын

Hello there! Well, I wouldn't say "notify" the mortgage company that you're doing "a subject to purchase with the existing mortgage". You would ask if they would be open to it or give you permission to do so. More than likely the mortgage company will tell you that your buyer will have to qualify for the loan and at the current market mortgage rate. The mortgage company would probably want to issue a new loan to the new buyer at the higher. Heck, if the lender agree to it, get it in writing...and then you're good. I don't know any lenders that would do this (if the mortgage rate is low)...but heck, it sure can't hurt to try. Best of luck to you!!

@PastorJamesAndrews

6 ай бұрын

@@AudraLambert so in that case there is nothing wrong with a “Subject To” transaction, correct?

@AudraLambert

6 ай бұрын

@@PastorJamesAndrews From my understanding, if the bank is willing to let the new buyer assume your loan, you should be okay. I would check all the fine print in the mortgage documents. From what I gathered on line, the people who are doing "subject to" deals are trying to avoid the lender at all costs...because they will not approve of this type of transaction. I would just make sure you get the blessing from the lender in writing that they are aware of this and have approved the loan to be assumable.

I have over 800 credit score and have more than 20% down payment. Is it possible to assume the super low interest loans people got years ago legally? I have prequalified for a loan, but the interest rate is much higher than it was.

@AudraLambert

4 ай бұрын

Probably not. The loan would need to be assumable...I don't know too many lenders who offer assumable mortgages. I do know that some VA loans are assumable. That would be nice though.

Legal in all 50 states.

@AudraLambert

5 ай бұрын

Not legal to intentionally defraud the mortgage company...last I checked.

@kellybarnett7578

5 ай бұрын

Sigh

You compare California where every other Market out there I don't think it's the right thing Heavy state is different

@AudraLambert

5 ай бұрын

Yes, every state is different. However, the government has set very strict guidelines on loan qualification on a National level. Anyone agreeing to sell their home subject to their existing loan that is not assumable, is defrauding their mortgage company. The government does not want unqualified home owners taking ownership of homes they can qualify for purchasing. They don't want to have a 2008 crash again. Just saying.

❤

@AudraLambert

6 ай бұрын

Thanks!!

Very good content, I love the topic!! Maybe it would be interesting to invite an attorney on the show and discuss this topic. To me this would be a civil dispute and not a criminal matter. Perhaps I would like to hear the opinion of a lender representative as well. Do they care as long as the payment is made? Sure, it’s probably an underperforming loan due to the low interest , but they would prefer that to foreclosure in my view. As far as the IRS goes, I agree that the mortgage interest deduction would be tough to apply since the mortgage is not in your name. That being said, wouldn’t still be an expense since it’s a liability that you need to address every month? Very complex topic!!

@AudraLambert

2 ай бұрын

Well, the main issue is that the banks are very regulated by the government...especially after the correction of 2008. Its not about banks caring if a loan just get's paid...its about if their files get audited (which they do) how do they explain a title change on the audit with no follow up? Banks are being very highly scrutinized...I assure you they want to avoid this as much as possible. The bank's buyer qualification measures created by the government was put in place to minimize the risk for the banks so that 2008 would not happen again. The government doesn't want people purchasing homes they can't afford. This subject to an existing mortgage program goes completely against what they were trying to accomplish. Trust me, its going to come out...and its not going to be pretty. I do like your idea of having an IRS expert and mortgage representative on a youtube video discussing the matter. NO way is an IRS expert going to give their advice out there (you can't even get an IRS expert on the phone)...nor a mortgage lender...everyone is trying to keep this thing hush hush. We will see what happens. Thanks for the comment.

@teodorflorea4235

2 ай бұрын

@@AudraLambert great point!! The mortgages are sold as conforming products and if a “subject to” sale occurs, the product is no longer conforming to the government loan standards. This makes it a more clear cut answer. Thank you for taking the time to dive into this topic!!

I was thinking 🤔. What if somebody was to buy a piece of land for cheap then buy a mc-mansion minimal down payment. And before the first payment have the house moved to the land they own free and clear. I'm just thinking about starting a house moving business and a land selling business lol

@AudraLambert

4 ай бұрын

Well, I believe in my state (CA) the tax assessor would come out and re-assess the value of the property...and then they would slap you with a large property tax bill. The other issue that may arise is permitting and city inspection. I live in California so we literally have handcuffs on when it comes to building codes and enforcement. Your plan does sound interesting!

@user-ov4wr5yu4r

4 ай бұрын

​@@AudraLambertok. Now I need a video on how to tell if a house has been moved. I'm not sure I want to buy one where they messed with the foundation. Like a car that's been in an accident, frame damage.

@AudraLambert

3 ай бұрын

@@user-ov4wr5yu4r Yes, I am not a fan of houses that have been moved. Structurally speaking I would have concerns.

👍👍

You compare California where every other Market out there I don't think it's the right thing Heavy state is different I've been trying to sell my house on the market To buy another house And it's the hardest thing to do I can't find a real estate or a person that wants to work with me Everything is cash or nothing

@AudraLambert

5 ай бұрын

Luis, that sounds very difficult. So sorry to hear that.

But, don the con did it, why can’t I ?

IRS grabbed all but $250 from all my accounts. Cash is King

@AudraLambert

3 ай бұрын

Ugh..they should not have that power. That's just no right. Not to mention, they are taking money out of my accounts for a bill that wasn't even mine. Unbelievable.

Once again, Ms. Lambert is wrong! No one is intentionally defrauding the mortgage company by taking title subject to the existing loan. IT is NOT illegal, never was and never will be. Lenders ALWAYS find out title has been changed when the hazard insurance policy is changed to new owner of record. They DON'T care. I repeat, the mortgage companies and lenders DON'T CARE! We have been doing subject to transactions for over 50 years and no lender has ever called a loan due because of title transfer. We are backed by attorneys who know the law and learned from them. I would suggest Ms. Lambert learn the facts and not blast out hearsay.

wow Robin Hood has been my role model since childhood but may switch to Ya haha just kidding, that was good and, how can ppl watch this and not press that like button, but F... em, getting nearer to 50k, Its down the hill from there

@AudraLambert

3 ай бұрын

Thanks Arthur...appreciate your support.

Quite frankly it’s sad you don’t get it. The bank just wants their payment. They don’t want to be in the foreclosure business. Transferring to a trust is not illegal. Assigning the beneficiary to another isn’t illegal. What YOU did was not at all a subject to purchase. The buyer of the property in a subject to cannot deduct the interest on the mortgage. Who told you that they do? That would be stupid. Jesus. You are naive.

@AudraLambert

Ай бұрын

Its sad you don't think there is anything wrong with intentionally defrauding the mortgage company. Not cool. Too risky for my blood.

This lady is a walking contradiction. It is legal in all U.S. states, though the process and requirements can differ between states. The laws and regulations around "subject to" transactions are related to mortgage and real estate transfer laws, not criminal laws. There may be additional disclosures or procedures required in some states, but the practice itself is not prohibited anywhere in the United States.

You are misinforming! in California Association of Realtors contain provisions contemplating a “subject to” transfer. The due on sale clause (a.k.a “acceleration clause”) is a provision in a mortgage document which gives the lender the right to demand payment of the remaining balance of the loan when the property is sold. It is a contractual right, not a law. This means that if title to the property is transferred, the bank may (or may not), at its option, decide to “call the loan due.” To be “illegal,” you must be in violation of a criminal law, code or statute. There is no federal or state law which makes it a crime to violate a due on sale clause. If the lender discovers the transfer, it may at its option, call the loan due and payable. In fact, the HUD-1 Settlement Statement (lines 203 and 503) that is used for virtually every loan closing has a blank which states, “loans taken subject to.” (read your HUD).

@AudraLambert

3 ай бұрын

I am not misinformed. If your are intentionally trying to defraud the mortgage company that is illegal. Fraud is illegal. The lengths it takes to "HIDE" a "subject to" transaction would indicate intent to defraud. The parties involved in the "subject to" transaction are going to EXTREME measures to hide that the property is being transferred. NOW, if the parties involved notified the lending institution of their transaction and got their blessing, thats one thing...but we all know the lending institutions would not agree to this BECAUSE the parties taking over the mortgage may not qualify for the loans AND the banks would want to charge a higher mortgage rate. However, all the "subject to" transactions that I have heard about, their main focus is how NOT TO let the lending institution know that there is a transfer. "Subject to" transactions are not illegal as long as all parties involved are aware of the transfer...the lenders are not. Most mortgage companies do not offer assumable loans. WE all know this is shady...not to mention the lives that are impacted negatively around this is type of "creative financing" is an outrage. Just wait until the Feds crack down on this...I wouldn't want to touch that with a 10 ft. pole.

@AssetFunding-kz1bx

Ай бұрын

You are absolutely correct! Taking title subject to is NOT illegal, never was and never will be. Lenders ALWAYS find out title has been changed when the hazard insurance policy is changed to new owner of record. They DON'T care. Ms. Lambert is wrong! We have been doing subject to transactions for over 50 years and no lender has ever called a loan due because of title transfer. We are backed by attorneys who know the law and learned from them. I would suggest Ms. Lambert learn the facts and not blast out hearsay.

@AssetFunding-kz1bx

Ай бұрын

You are absolutely correct! Taking title subject to is NOT illegal, never was and never will be. Lenders ALWAYS find out title has been changed when the hazard insurance policy is changed to new owner of record. They DON'T care. Ms. Lambert is wrong! We have been doing subject to transactions for over 50 years and no lender has ever called a loan due because of title transfer. We are backed by attorneys who know the law and learned from them. I would suggest Ms. Lambert learn the facts and not blast out hearsay.

@AssetFunding-kz1bx

Ай бұрын

You are absolutely correct! Taking title subject to is NOT illegal, never was and never will be. Lenders ALWAYS find out title has been changed when the hazard insurance policy is changed to new owner of record. They DON'T care. Ms. Lambert is wrong! We have been doing subject to transactions for over 50 years and no lender has ever called a loan due because of title transfer. We are backed by attorneys who know the law and learned from them. I would suggest Ms. Lambert learn the facts and not blast out hearsay.

@AssetFunding-kz1bx

Ай бұрын

You are absolutely correct! Taking title subject to is NOT illegal, never was and never will be. Lenders ALWAYS find out title has been changed when the hazard insurance policy is changed to new owner of record. They DON'T care. Ms. Lambert is wrong! We have been doing subject to transactions for over 50 years and no lender has ever called a loan due because of title transfer. We are backed by attorneys who know the law and learned from them. I would suggest Ms. Lambert learn the facts and not blast out hearsay.

Hey. I've noticed some issues with your KZread Channel, and I would like to help you with some assistance.

@AudraLambert

5 ай бұрын

Thanks for reaching out...I think I got it.

Lenders don't care. Never had one complain. All they want are the payments on time. Period. We make up back payments and give folks relocation cash. All happy.

@AudraLambert

4 ай бұрын

Sounds good...but is the seller's credit still held up in the property you purchased from them? I am sure they wouldn't be too happy to hear about that if they don't already know.

@torreypines3074

4 ай бұрын

We help folks with problem houses. Sellers usually have no equity and behind on payments facing foreclosure. We make up back payments, SAVE their credit, prevent sheriff eviction, and give them relocation cash. At closing they sign the docs that explain every detail. Also their credit is not "held up". A new lender views the current loan as performing and not detrimental. They have a chance to improve their status instead of a foreclosure eviction and bankruptcy. Been solving problems for many years.@@AudraLambert

You have no experience in dealing with subject to and yet you're making a video about it.

You compare California where every other Market out there I don't think it's the right thing Heavy state is different

@AudraLambert

5 ай бұрын

Yes, California is a different state..and yes every area is different.