'Subject to' deals have become quite common in the real estate marketplace. There are distinct advantages to doing these types of deals, especially for those who make their living buying and selling houses. Interestingly enough, for a 'subject to' deal, where a homeowner is going to deed you a house, you actually have two different closings.

The first closing could be at the homeowner's kitchen table. You have a document which permits the homeowner to sign the property over to you. You also need the homeowner's social security number so that you can have access to the mortgage company so that you can obtain the mortgage booklet and start making payments for the homeowner.

You'll also need to consult with an attorney to make sure that the property is free and clear. If there's a lien on the property, the situation can turn into a negotiating point with the seller. You don't want to face the unfortunate surprise of obtaining a property that is plagued by liens.

Then you will have a formal closing with the attorney or title agency and the deed transfer can be recorded. You can then take possession of the house. You'll need to know if the insurance and taxes were handled in escrow or handled by the homeowner outside of the loan. All correspondence then goes through you rather than through the original loanee or the original owner.

With a short sell deal, you'll need to call the loss mitigator at the bank to discuss the short sell option. You'll then need to obtain a short sell package from the loss mitigator. Usually, you will receive it right away.

The loss mitigator will want to see a letter indicating why the homeowner is in a difficult financial position, along with financial information showing where the homeowner got into trouble. After the information is collected, the short sell package is then sent back to the loss mitigator. You'll then be waiting to hear whether the deal has been accepted or rejected. Once the deal is accepted, the bank qualifies the title agent or attorney for setting up the closing.

The entire process may seem fairly complicated, but, in actuality, it is basically straightforward. Also, the more closings you end up doing, the more adept you will become at them. When you put your experience to work, you'll find that the process can run quite smoothly over all.