
LegalLife Multistate Guide and Handbook for Selling or Buying Real Estate New York Form


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People also ask
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How does subject 2 work?
Subject to transactions, otherwise known as “sub 2” or “sub to”, involve making an offer to purchase a property subject to the existing mortgaging and finance on that property.
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What is subject to real estate in NY?
In a subject to, sometimes called a subject 2 deal, the existing financing that a homeowner has setup is taken over by an investor. This route is basically paying for the mortgage already in place through an agreement with a homeowner.
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What are the disadvantages of subject to real estate?
Risks to Both You and the Seller This risk affects both parties: – Seller: Faces potential foreclosure, which can severely damage their credit score and financial standing. – Buyer: Risks losing the property and any investments made into it, such as renovation costs or down payments.
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Why would a seller agree to a subject to deal?
When a seller agrees to a subject-to deal, they're allowing you to take over their mortgage payments while keeping the loan in their name. This might sound strange, but it makes sense when you consider the pain points many sellers face: Foreclosure: Many sellers are in foreclosure and need a quick solution.
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How to start a real estate business in New York?
How Do I Get My New York Real Estate License? Step 1: Be at Least 18 Years of Age. ... Step 2: Register and Complete the 77 Hours of Required Education. ... Step 3: Find a Sponsoring Broker. ... Step 4: Schedule and Take the New York Real Estate Salesperson Licensing Exam. ... Step 5: Apply for Your New York Real Estate Salesperson License.
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What is an example of subject to real estate?
For example, if you're buying a home for $300,000, and the existing mortgage balance is $250,000, then you'd pay the seller $50,000 in cash, in addition to the sales price. As you can see, the buyer isn't assuming the mortgage. The buyer is just paying forward an extra sum so the seller can pay the remaining balance.
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