Existing Financing Solution

Exit a Property by Allowing Us to Take Over the Existing Mortgage Payments

If you have little equity or owe more than you'd net at a traditional closing, a subject-to structure may allow you to walk away without bringing cash to the table.

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At a Glance

Available

21–30 Days

Estimated Timeline

None

Equity Required

Covered by Us

Closing Costs (Seller)

Stays in Place

Existing Loan

Best Fit For

Sellers with low or negative equity, behind on payments, or facing foreclosure

Plain English

How This Works

A subject-to purchase means we acquire the property while the existing mortgage loan stays in place in the seller's name. We take over the monthly payment obligations and manage the property going forward, but the original loan remains on the seller's credit profile until it is paid off or refinanced.

This structure is used when the seller has little or no equity, is behind on payments, or simply cannot afford to bring money to closing on a traditional sale. It is not risk-free, and it involves legal and financial considerations that every seller should understand before proceeding. We strongly recommend reviewing all documentation with a qualified real estate attorney before signing anything.

The Process

Step by Step

Review the Current Loan

We review your existing mortgage — balance, payment amount, interest rate, and whether any payments are past due.

Verify Payments, Balance, Rate, and Arrears

We confirm the full picture of what's owed and structure a plan around it, including catching up any missed payments if applicable.

Structure the Seller's Exit

We work out how you exit the property, what you walk away with, and document the full terms clearly before anything is signed.

Complete Title and Legal Documentation

All documentation is completed through a licensed title company. A real estate attorney should review the agreement before closing.

We Begin Managing the Existing Payment Obligation

After closing, we take over the payment responsibility on the existing loan and manage the property from there.

Fit Check

Who This Is Best For

Sellers who owe close to or more than the property's current market value
Sellers who are behind on payments and want to stop the foreclosure clock
Sellers who cannot afford to bring cash to a traditional closing
Sellers who want to exit without waiting months for a short sale or listing process
Situations where speed and debt relief are the priority over net proceeds

Why It Works

Key Benefits

May Avoid Bringing Cash to Closing

In the right structure, you exit the property without needing money out of pocket to cover the gap between what you owe and what the home is worth.

Can Stop Foreclosure Immediately

If you're behind on payments, taking over the loan and catching up arrears can stop foreclosure proceedings and protect your credit from a foreclosure judgment.

All Closing Costs Covered

We cover the costs associated with closing so you don't need to bring funds to the table.

Fast Closing

Subject-to purchases can often close within 21 to 30 days once terms are agreed upon.

Clean Exit

You walk away from the property and its associated payment obligations, allowing you to move forward.

Important to Understand

Considerations

Every transaction involves tradeoffs. Here is what to keep in mind with this approach.

The original mortgage loan generally remains in the seller's name until it is paid off or refinanced. This means the loan may still appear on the seller's credit report.

Most mortgage loans contain a 'due on sale' clause that gives the lender the right to call the full loan balance due if the property transfers ownership. While lenders rarely exercise this right immediately, it is a real provision in most loan documents and sellers should understand it exists.

We recommend every seller consult with a licensed real estate attorney before entering a subject-to agreement. This is not a standard transaction and the legal implications deserve professional review.

This structure is not appropriate for every situation. If you have meaningful equity in your property, a cash offer or Full Market Value Program may produce better results.

Illustrative Example

Example Seller Scenario

Educational Example Only

A homeowner purchased a property several years ago with minimal down payment. After a period of financial hardship, they fell three months behind on the mortgage and received a notice of default. The property's current value was roughly equal to the remaining loan balance, leaving little to no equity for a traditional sale.

Through a subject-to structure, the existing loan payments were caught up, the homeowner exited the property without owing anything at closing, and the foreclosure process was stopped. The seller was able to move forward without a foreclosure judgment on their record.

Example shown for educational purposes only. Actual terms, timing, eligibility, and outcomes vary by property and transaction.

Example shown for educational purposes only. Actual terms, timing, eligibility, and proceeds vary by property and transaction.

Common Questions

Frequently Asked Questions

Does the loan get paid off at closing?

No. In a subject-to purchase, the existing loan stays in place. We take over the payments but the loan remains in your name until we pay it off, refinance, or sell the property.

What happens to my credit?

If we make payments on time, the loan continues to report positively. If payments are missed, it could negatively affect your credit. This is a real risk to understand before proceeding.

What is a due-on-sale clause?

Most mortgages include a provision allowing the lender to demand full repayment if the property is transferred. Lenders rarely invoke this immediately, but it exists and sellers should be aware of it.

Do I need an attorney?

We strongly recommend it. A subject-to transaction has legal implications that go beyond a standard home sale and independent legal review protects your interests.

Is this the same as a short sale?

No. A short sale involves negotiating with the lender to accept less than what's owed. A subject-to keeps the loan intact and in place while transferring possession and payment responsibility to us.

Ready to See Which Option Fits?

Tell us about your property and we'll go over every option that makes sense for your situation — no pressure, no obligation.

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