A Second Way to Get Your Listing Sold

We buy the property and take title, while the existing mortgage stays in your seller's name; our agreement makes us responsible for the payments going forward. This is called buying subject-to the existing financing, and it does not release your seller from liability to the lender.

A subject-to purchase can be a lawful real estate transaction when properly documented and compliant with applicable law. HUD-1 instructions recognize taking title subject to an existing loan, but that is not lender approval or an exemption from the due-on-sale clause; the seller's attorney and closing company should review the transaction.

It can be worth considering when a seller has little equity and a conventional sale would require cash at closing. Our offer aims to cover the agreed ongoing payments and property expenses so the seller can move on, while the seller still carries the risk of the loan remaining in their name.

We arrange for a third-party loan servicing company, licensed where required, to process payments and provide monthly confirmations if your seller elects them. The seller should also retain access to lender statements and confirm how late-payment alerts will work before closing.

The agreement should spell out notice, cure periods, and the seller's remedies if we default. An attorney may structure a deed-in-lieu held in escrow where appropriate, but it is not an automatic or guaranteed return of title; enforceability, remaining liens, and any retained payments or improvements depend on the documents and law.

We arrange insurance appropriate to our ownership and actual use, with the lender and seller's interests listed as the insurer requires, including additional-insured status where appropriate. We transfer utilities into our name and coordinate coverage with the insurance professional so there is no intended coverage gap.

Your seller should plan for the loan to remain in their name until it is paid off or refinanced, potentially for several years. Any specific payoff deadline must be in the written agreement; an earlier refinance is not guaranteed.

The lender can continue reporting the mortgage in your seller's name, so on-time payments can support a positive payment history, but a score increase is not guaranteed. Late payments or a default can harm the seller's credit even after ownership has transferred.

A transfer can allow the lender to demand full repayment under a due-on-sale clause, even when payments are current. Keeping the loan performing does not remove that right, so the seller and their attorney should review the risk and the agreed response if the lender calls the loan.

They may, but the existing mortgage can still count toward their debt-to-income ratio. Their next lender must review the loan and payment history under its underwriting rules; do not assume our payments make the debt disappear from the application.

Yes, we use a licensed title company for the title search, settlement, and title insurance, subject to the policy's terms and exceptions. The seller can have their own attorney review everything before signing; we do not use kitchen-table closings.

Our terms offer is designed so the seller does not need to bring cash to closing. The written offer and title company's settlement statement must confirm that result after liens, arrears, taxes, and other obligations are reviewed.

Our cash and terms offers provide for the buyer to pay the agreed agent commission and closing costs. The amount, timing, and any exceptions are documented in the purchase agreement and closing statement, with your brokerage's involvement.

That depends on the agreed price, existing loan balance, and other offer terms. We lay out cash at closing separately from debt left in place and any deferred payments, so you can compare actual proceeds and risks with the cash offer; a higher price does not automatically mean more cash at closing.