my friends in business section.

Seller’s Credit is Often Improved or less damaged
Often, we buy from sellers with a troubled payment record. They frequently have loan arrearages they cannot pay. In some situations, foreclosure is imminent. When we step in to buy these properties, we pay the arrearage and reinstate the loan.
Many times we use this strategy to wholesale the property to another investor, or an end buyer. When doing so the lenders win when they are paid off in full from a potential troubled asset. The seller wins by having what could have been a foreclosure on their credit now being a loan that was paid in full. This does not always improve the sellers credit, however it can have minimize the damage already done.
Once we reinstate the loan, we begin to make regular monthly payments to the seller’s account. From the lender’s point of view, the account has “miraculously” improved. From the seller’s point of view, their troubled credit “magically” begins improving as their delinquent account and arrearage disappears and the account becomes and stays current. Over a 12-month period, having a mortgage loan that is current goes a long way to improving the seller’s credit score and borrowing power.
And as part of our negotiations, we often tell our sellers about this particular benefit. Not only do they sell their property quickly but also they get their credit scores and credit records improved because of it.
Lender Losses are Minimized
Lenders are helped by “subject to” the existing mortgage transactions. By creatively utilizing this technique, we often save properties and loans from foreclosure action.
Foreclosure action is generally a very expensive process where many parties lose. The borrower would clearly vacate the property and suffer a foreclosure record. But the lender often takes business losses by paying fees on foreclosing and managing vacant properties that have little or no equity.
Additionally, when they do finally resell the properties, they often do not fully recover the monies they originally loaned out. These costs are passed on to future loan customers.
By doing our part to “save” the properties and the accompanying loans, lenders suffer fewer losses from foreclosure action. More importantly, they continue to have a performing account with ongoing loan payments.
As Investors
We understand the concept, advantages, and process of purchasing property subject to the seller’s existing financing. Understand the goals of prescreening sellers. Identify key points in negotiating a purchase subject to existing financing. Identify points of analysis when considering the subject to deal. Understand lender motivation factors and learn how to address those factors. Know how to present offers to motivated sellers and how to gain ownership of property without qualifying for new financing and without using much, if any, of their own money. Evaluate the existing financing, the seller, and the market. Always look for a win win scenario for all parties involved.