How Is The Seller Protected In Subto And Seller Finance Deals?

Every day someone DMs Pace and asks these questions:
How is the seller protected in SubTo?
How is the seller protected in Seller Finance?
WHY WOULD A SELLER SELL TO YOU ON SUBJECT TO? WHYYYYYYYYY????
Are SubTo and Seller Finance deals everywhere? YESSSS
Watch this episode and make a comment below of what questions you have on the topic!!!
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❎ I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a KZbin video for entertainment purposes ONLY ❎

[@allieb7016]

Hey subto student here. Pace ALWAYS goes above and beyond for the community. It’s the go-giver mentality that makes him so great, so if anyone needs any help with creative deals let me know.

[@PaceMorby]

Thanks again Alandra. Appreciate you guys.

[@jbaby007]

I might have a sub to deal but I'm not sure what to do or how to follow up. I've never done a deal

[@edgardogerena8386]

How do I connect with you!? I’m ready to take the next step

[@shashankkaul7747]

This is amazing appreciate you guys sharing this! Due on sale clause, Deed of trust and promissory note. Appreciate you guys!

[@nicholdelossantos7462]

I’m so grateful I came across your channel.

[@breakage959]

pace giving away too much game... sheeesh

[@shashankkaul7747]

Amazing energy 1:06:57 🎉

[@cimaklimin2384]

I am sorry, but the credit card analogy is not really applicable, because there's no collateral. In traditional RE transactions, seller finance, or hard money, etc. - there's a collateral, the underlying asset. Who is protected by collateral in a SubTo deal? The bank. A buyer gets the ownership via Warranty Deed. A seller is still on the hook for the mortgage payments to the bank. If the buyer defaults, the bank will foreclose and take collateral (the house). What's the buyer's loss? Whatever payments he made. No impact on credit. What's the seller's loss? Foreclosure and ruined credit. So how is the seller protected?

[@peterneudorf4888]

Oregon Trail

[@tomallen3906]

Oregon trail

[@Rollmydicehuhh]

How dare you change my mindset on BRRRR

[@junglejoecrypto7095]

Good snaikeis…….

[@OhyeahhhZ]

It sounds like you literally can’t make a bad deal with seller financing or sub to. I would love to hear a situation that makes this statement not true. Like please correct me if I’m wrong. I want to learn more

[@OhyeahhhZ]

Side note. So much value in this video. Answers so many questions someone new may have. Thank you Mr. Morby

[@normalizingyoungmillionaires]

“Done DID THE WORK and made videos” 🤣🤣. Facts! People are lazy as hell man. I’m soaking it all in watching all of your content!! Can’t thank you enough! I’m gonna go get this Sh:+!!

[@dandelice4370]

Pace Jersey may suck somewhat but not as hard as those Sunbelt states you love lol. Schools are garbage, governments can't even keep their electric grid running, lol. Their only reason, a big reason no doubt, is that it's too expensive to stay. We have hospitals close by, the beach, camping, rivers and lakes, close to NYC and Philly. We're top 10 you can't tell me different.

[@aaronkircher8177]

A seller financed Deed of Trust is going to be in a subordinate position to the seller's original Deed of Trust. If the seller forecloses on their loan, their original lender is going to foreclose on their loan and they are in a superior position to get paid first and the seller can only get what's left after paying off the original mortgage and all the foreclosure fees, if anything is left. That doesn't sound like great protection for the seller.

[@vhiftyyi]

buuuuuuut....that's not how you say hello in Korean. It's "annyeonghaseyo."

[@David-jh4so]

ONION ON MY SHNEAKERS LMAO. Iived in Malaysia for 3 years i know what you mean at first I was struggling and offending people left and right

[@ryanhayes8706]

Hey Pace. I’ve tried reaching out to you on social. Either you have 5-6 accounts or there is a bunch of fake accounts. How can I connect correctly?

[@PaceMorby]

Hey Ryan! I appreciate your effort reaching out. May I know what it's about?

[@ryanhayes8706]

I want to join your team and learn from you. I just submitted a request on your website.

[@dahliadoll2482]

There is so much to learn from you Pace. I've stayed home sick from work for the past 4 days. The first thing a did was to have my phone play your vid's while I was trying to rest.

[@AncientCityStudios]

44:14 - "All of these things are then recorded at the County Recorder Office". Isn't the whole point of the Executory contract to make it so the conveyance isn't recorded triggering Due on Sale?

[@neverlag2204]

Lol Cody's pocket rockets eh 🤣

[@Nemo-yn1sp]

How am I as the seller protected if after a couple of years the subject-to buyer decides s/he made a mistake and stops paying. I'm selling because I'm planning to live in another country most of the year. I'll have to return to deal with it. What if the people living in it, trashes it? The deal I've been offered will give me $5K down, pay my mortgage/property expenses plus an amount toward the sale price on a monthly basis, 0% interest until paid off. The acquisition manager says they will renovate and do a 2 year lease-purchase arrangement until it is sold, at which time I'll be paid off. Process would be repeated until paid off. There's not much built in for travel and legal expenses or big repairs. So the papers are fine, but enforcing them, maybe not so easy. How do I check the credit worthiness of the company I'm financing? It all sounds too good to be true. I would like it to be true.

[@markrowland2371]

If they're going to fix up the property and pay you monthly payments, All that is value and dollars. If they default on the deal you get the property back and keep any money you were given. You should feel pretty good about that.

[@tedd7028]

Always droppin fire

[@PaceMorby]

🔥🔥🔥

[@shashankkaul7747]

Wow 🤩 yes 🙌 1:03:28

[@gregorylewis9442]

Showing the contracts and the mechanics is awesome 😎👍.

[@ek07305]

How did you pay the PML back on the Sonnet property in one year if it cashflows only 2000-2500 per month = 30k/yr max?

[@scottkeefer5913]

He probably did a cash out refinance. I haven't watched the video yet though.

[@BryanFerra]

This is wild.. I know who Cody is, from Vemma back in 2014. I found you, Pace, like a week ago. What a small world.

[@PaceMorby]

Indeed! 🙌

[@BryanFerra]

@@PaceMorby also thanks for making this video because I’m one of those who commented asking exactly how are they protected. 👍🏼

[@sendculture]

“I really like ice cream, but I don’t enjoy shitting my pants.” -Pace Morby

[@AncientCityStudios]

What up Pace! Regarding, "How are the credit card companies protected?" Well, they've collateralized your promissory note which is backed and guaranteed by The United States, so all of their debts will be satisfied one way or another. Whether it's collections, bundling the debt and selling it off, or debt forgiveness through the state, they'll always get paid.

[@lewis200802]

Every time he’s about to answer the main question… “let’s pretend we’re at the grocery store…” 🙄🤦‍♂️

[@David-jh4so]

The batchleads has been pulling bad data my ccs had quite a few come back recently purchased or not in distress had 2 diff people even follow up calling their banks to make sure

[@PaceMorby]

David. Have you reached out to BatchLeads support? batchleads.io/contact-us

[@David-jh4so]

@@PaceMorby yes I have and it's a circus reach this person to get referred to the next person and the next person. We've once again pulled a list with some bad data. Batchleads is looking like a glorified roledex which features expired data list you have to pay for. propstream or flipster never did me like this

[@LIVINGINHENDERSONNV]

How does a seller pay off a $25k cash out refi if they decide to sell subto?

[@SunShine-jq7tl]

Great... As always thank you both for your time and sharing your experience....

[@benhorton2081]

57:45 the game was called Oregon Trail.. ha PAce showing his age 🤙

[@arturocortez4175]

I'm feeling the Holy ghost also....🤞

[@andr3wsvaz223]

where can I find this pdf that paces is talking about in the video on the subto page ?

[@thomson723]

Great stuff. Thank you.

[@MrCJB21]

Pace went in on this one!! 🔥🔥🔥✌🏾✌🏾✌🏾

[@aaronkircher8177]

He makes a big deal about how hard you're promising to follow the terms of the seller financed Deed of Trust but Subject To relies on the seller violating the terms of their own Deed of Trust with the bank and hoping they don't find out and enforce the terms of that Deed of Trust.

[@DelusionalPicking]

Subject to is actually keeping the bank financial terms and allowing to keep mortgages in tact that would otherwise be called or foreclosed. Remember the seller is being serviced the equity and fees the buyer has agreed. The seller,simultaneously, is paying the servicer to make payments to the original lending institution. If a bank decides to call it, that’s on the lending institutions discretion

[@santiagobenitez6818]

Smooth Operator!! Saving lives. Your Amazing Pace!

[@PaceMorby]

Santiago. Appreciate you bro!

[@1cgreiner]

Such great info & inspiring

[@PaceMorby]

Glad you think so!

[@aaronkircher8177]

It's like watching a behind the scenes scam in progress.