We purchase your property and take title while your existing mortgage stays in place. We take over every payment — you move on without the burden.
Get StartedIn a subject-to transaction, the buyer purchases the property and takes title while the seller's existing mortgage stays in place. The buyer does not assume the loan — the loan remains in the seller's name — but the buyer takes over responsibility for making the payments.
The seller is no longer responsible for the property or the monthly payment, but the loan stays on their record until it is paid off or refinanced.
This is a fully legal and widely used strategy in real estate. Title transfers through a licensed title company or closing attorney, just like any other sale, and the transaction is documented with a state-approved Purchase and Sale Agreement.
Subject-to transactions can be a strong option for sellers in situations where a traditional sale may not be ideal. Common scenarios include:
Buyer and seller execute a Purchase and Sale Agreement that outlines all terms, including the subject-to arrangement. Handled through a licensed title company or closing attorney.
Title transfers to the buyer via warranty deed. The seller's existing mortgage remains in place. We take full responsibility for all mortgage payments — and we cover all closing costs.
The buyer owns the property and is responsible for all carrying costs — mortgage payments, taxes, insurance, HOA fees, utilities, and maintenance. The seller walks away.
The PSA includes clear obligations requiring the buyer to make all mortgage payments on time. If the buyer fails to perform, the agreement provides the seller with remedies including the right to reclaim the property.
We also set up third-party payment servicing so the seller can verify that payments are being made directly to the lender.
The buyer is required to maintain full property insurance at all times, with coverage amounts at least equal to the existing policy.
The seller can be named as an additional insured or interested party on the policy, giving them visibility and notification rights if coverage ever lapses.
A title policy is issued at closing insuring the buyer's interest in the property, paid for entirely by the buyer. Title is transferred through a licensed title company or closing attorney, ensuring proper documentation and recordation.
The buyer's goal is to refinance the property and pay off the seller's existing mortgage within a defined timeframe. This removes the loan from the seller's name entirely. The PSA outlines this timeline and the buyer's obligation to pursue refinancing in good faith.
Most mortgages contain a due-on-sale clause, which gives the lender the right to call the loan due if the property is transferred. This is a common question, so here is the reality:
While the clause exists in most loan agreements, lenders rarely enforce it as long as payments are being made on time. The lender's primary concern is that the loan is performing.
That said, we are transparent about this with every seller — the clause exists, and while enforcement is uncommon, it is not impossible. Our commitment to keeping the loan current and pursuing refinancing within a defined timeframe directly mitigates this risk.
We pay all closing costs, title insurance, and transaction fees — you pay nothing out of pocket. The seller's only expense is their own listing agent commission.
After closing, we are solely responsible for all carrying costs associated with the property.
Happy to walk through the process anytime. No pressure, just answers.