Underwriting worksheet — No. 04

Subject-to risk analyzer

Taking over a seller's loan is a bet that nobody calls it. This worksheet scores that bet, then shows what happens to the payment, the margin, and your cash if the bet goes wrong.

Basis of estimate: Existing note taken over as written, at today's value and rent
Leading measure: Overall due-on-sale risk score, 0 to 100
Prepared by: Aldo Chandra, Philadelphia PA

Overall risk score

Proceed with caution

Moderate risk or tight margins. Ensure you have reserves and an exit strategy.

Band MODERATE 0 low — 100 high

Supporting measureReading

Schedule of assumptions

Adjust any line; every figure on this page restates immediately.

Existing mortgage

Line itemAssumption

Current loan balance $

Original loan amount $

Interest rate %

Monthly principal and interest $

Leave blank to amortise from the balance, rate, and remaining term.

Remaining term mo

Loan type

Lender or servicer

Enforcement history sits behind this list. It is judgment, not a commitment from anyone.

Junior lien behind the first

Property and deal

Line itemAssumption

Property value, current $

Monthly rental income $

Monthly expenses $

Taxes, insurance, reserves and management — everything except the note payment.

Cash to seller $

Estimated closing costs $

Score breakdown

Five factors, twenty points apiece.

Risk factorPoints

If it goes wrong

Three outcomes worth pricing before you sign anything.

How the score is weighted

One hundred points, split evenly across the five factors above.

Factor	Max points	What moves it
Lender aggressiveness	20	Servicer's enforcement track record
Loan type	20	Conventional, FHA, VA, or USDA
Equity position	20	Equity the lender could recapture
Rate versus market	20	Gap between note rate and market rate
Loan balance	20	Whether the balance justifies action

This analyzer produces estimates for planning and deal screening only. Lender enforcement scores are judgment calls based on past servicer behavior, not commitments, and nothing here is tax, legal, or investment advice. Read the actual note and mortgage, and run any subject-to structure past your own attorney and CPA before you close.

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