Sell Your Home Subject-To
Subject-To Financing (Take over Payments)
Another variation on owner financing is called "subject-to" financing. In a subject-to transaction the seller sells their property to buyer subject-to the underlying financing. This transaction takes place at a title closing company just like a traditional sell, but the main difference is the loan stays in the seller's name. The buyer gets the deed to the property and makes the payments directly to the bank or through a third party (we work with a national law firm and this is our preferred method). The seller no longer has any responsibility for the property. The new buyer is responsible for payments, maintenance, taxes, insurance, etc...
Like any creative financing deal the key to success is on the paperwork. We work directly with a national law firm to produce the correct and legal documents needed to successfully close subject-to transactions. Another key to find a qualified buyer that can afford the payments. There are many "qualified" buyers today that cannot get loans from banks for any number of reasons. Some reasons are: self-employed, recent hardship (divorce, job loss, etc..) but now back on their feet, down payment (typically all banks are requiring 20% down. On $150,000 home this would be $30,000 and in today's strapped market many people don't have that much liquid cash), or they are just looking for a deal and don't want to have to put down as much money.
One thing to remember when selling your home on subject-to, like any other form of owner financing, your name will remain on the loan. If you are in the market for a new home we can help you find another seller who is selling their home using "subject-to". This is a variation on a house swap except there might be many homeowners involved.
We work closely with a group of investors and attorneys to make these deals happen. They have closed over 250 subject-to deals in the last 7 years. As a benefit to working with us you will be able to speak to our attorney and get all your questions answered!
Contact Us if you are interested in hearing more... |