Charlie and Randy France are the authors of “Subject To” real estate investing.  There are multiple ways to purchase homes but Charlie and Randy France have a unique facet of the industry “Subject To” purchasing.  At first it sounds complicated and some people even think it is illegal, but in truth it is as they say, “The safest, easiest and often times the most profitable way to purchase properties.” “Subject To” means subject to the existing mortgage that is already on the property.  The note terms that were originally created with the lender stay the same.  This includes the name the loan was purchased in.  You are not assuming the loan.  The terms you create with the seller are between you and them as long as you follow to the letter the terms set up when the loan was originated.

When a property owner sells his home “subject to” the existing mortgage, the buyer must make the payments on the mortgage or lose the property by foreclosure. (That is the same as if the seller were not making payments on his loan.) However, the foreclosure will never show up on the buyer’s credit record because the buyer was not legally obligated to make the mortgage payments on that existing loan. Such a foreclosure on a “subject to” mortgage will adversely affect to seller’s credit record, not the buyer’s.

Reasons why the "Subject To" works includes a seller is being transferred; they don’t have the average 3 months to wait for their home to be sold.  The seller is getting divorced; they are faced with half the income they had before and have to start over. The seller is buying a new home but they can’t begin to build until they sell their existing home.  The seller lost their job and cannot afford to wait for the home to be sold.  They need to move now and get the debt relief.  The seller has little or no equity, Subject to creates a win-win situation for both buyer and seller.

The thing about Charlie and Randy France is they did their homework before they began developing their own products.  They have informed themselves as all good real estate investors should and they have a proven track record for their own products.