What is Subject To?

How does Subject To work?

Subject to in real estate is a property that is sold with an existing loan or mortgage. The mortgage remains in the seller’s name, while the homebuyer assumes the mortgage balance and takes over the payments for the remaining life of the loan. Before entering into an agreement, a terms are negotiated with the seller and the buyer will be given legal title to the property. This type of financing usually benefits sellers who are behind on mortgage payments and are facing foreclosure. Subject to can be combined with seller financing if seller has equity too. A promissory note and a deed of trust between the buyer and seller will be created stating the monthly payments, repayment schedule, and consequences of default.

What are the benefits of  “Subject to” for sellers?

➣  Quick sale – Without the bank in the equation, it would be easier to sell especially if the seller is desperate in disposing of the property.

➣  Saving grace – This is favorable to sellers who are especially facing foreclosures, or having a big event in their life that they may want to sell the property and get cash quickly. This type of agreement will avoid a catastrophic hit on their credit.

➣  Mortgage payment relief.

➣  Potential opportunity to receive passive income.

➣  Amplifies the seller’s credit, helping ability to buy a new home.

➣  Don’t have to worry about tenants or managing the property.

➣  Save on closing costs and commissions.


Here at We Love All Homes, we care about creating win-win situation ensuring everyone walks away happy. We offer different solutions with hopes that we’ll be able to cater your needs of selling your property in an efficient and stress free process while getting what you want. If you have any questions or want more information, our team is willing to hear your questions, and assist you in every step of the transaction. Give us a call at (469) 278-5635, to verify if this is a great fit for you!

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