SUBJECT-TO INVESTORS: THIS IS EXACTLY HOW SELLERS GET HURT
I am presently trying to help a couple in Florida who are now facing foreclosure after trusting people who represented themselves as experienced members of the “SubTo Community.”
People come to me from time to time with these problems and each one makes me more mad than the last, because all of these problems could SO EASILY have been avoided.
Here is what I understand happened:
In June 2024, the so-called TC contacted the sellers' real estate agent about purchasing their Panama City property subject to the existing mortgage.
The TC represented that he was a transaction coordinator and would protect the seller throughout the process. The seller says they paid him $1,000 in cash outside closing because he told them that was all he was making.
However, the settlement statement appears to show an additional $11,700 wholesale fee paid to him.
That is the first serious concern and huge red flag.
The seller’s real estate agent did not understand the transaction and stepped away. Today, the seller has only the purchase contract. She says the other documents she signed electronically are no longer available through DocuSign (they have been deleted by the TC), and she does not have copies.
The contract was reportedly assigned, and the property was conveyed an individual by general warranty deed. Second big red flag!