FREQUENTLY ASKED QUESTIONS

“Subject To” is a way of purchasing/transferring real estate where the buyer takes title to the property, and the existing loan stays in the name of the seller. In other words, the sale is completed, “subject to” the existing financing. The buyer now controls the property and makes the mortgage payments on the seller’s existing mortgage.

Yes. Please refer to Fill-able HUD1 (Link). This is a standard form that title/escrow companies and attorneys use to build settling statements. Please note lines 203 and 503. This is a Code of Federal Regulation (CFR) document. Page 396, second paragraph states: “Line 203 is used for cases in which the Borrower is assuming or taking title subject to an existing loan or lien on the property.”

Sellers may consider utilizing the subject to method in low equity situations as it allows for them to relinquish ownership of the property without the need for additional funds or having to write a check at closing. Depending on the seller’s mortgage balance, this method may result in greater financial gain for the seller compared to a traditional sale. Additionally, it enables the sellers to move on from the property as they are no longer responsible for expenses such as repairs, maintenance, utilities, taxes, insurance and HOA fees. The seller’s credit score may improve as a result of timely payments made toward the mortgage.

The buyer engages the services of a third party loan servicing company, which is responsible for facilitating the monthly mortgage payments. Additionally, the sellers have the option to elect to receive notifications on a monthly basis, indicating that the mortgage payments have been fulfilled.

In the event of a default by the buyer, a pre-signed Deed in Lieu held by the servicing company would be utilized, thereby transferring the property back to the seller’s possession. The seller would then benefit from any payments made toward the loan, improvements made to the property, and appreciation in the property’s value. They may then choose to sell the property again for a higher value if desired. This strategy has been reported advantageous by previous sellers, and they have expressed a desire for a default to occur.

Our insurance agent will be responsible for replacing your current policy with our policy, which includes the addition of the sellers as additional insured parties. This will not only ensure our coverage under the policy but will also provide coverage for the sellers. We will take the necessary steps to transfer utility services into our name.

The short answer would be for as long as we can keep it. We advise sellers and agents to anticipate maintaining their name on the mortgage until the mortgage balance is fully settled. The typical holding period is 7-10 years.

As the loan remains in the name of the seller, timely payments made to the lender will be reported to the credit bureau, positively impacting the seller’s credit score. This can be advantageous for the seller.

We buy houses in your area that fit our buying criteria. From there we may repair the house and resell it to another homeowner or keep it as a rental ourselves. We also have a team of agents so if listing the home is something you are looking to do we can help you with that as well.

We’ll make you an offer and if it’s a fit, we’ll buy your house and cover all closing costs! No hassle or fees! We make our money after we pay for repairs on the house (if any) to fix it up, market the house, and sell it for a profit (we’re taking all of the risk here on whether we can sell it for a profit or not, once we buy the house from you). The responsibility is ours and you walk away without the burden of the property and its payments. Zero commissions, zero fee’s, that’s our guarantee!

When working with a real estate agent, you pay between 3-6% of the sales price in commission costs. Suppose a house is selling for $100,000, you’ll pay between $3,000 – $6,000 in commission fees. Agents provide a great service for those that can wait 6-12 months to sell and who have room to pay the commission on the sale. Since we’re the ones buying the house from you, and we pay with all cash. we can make a decision to buy your house within a couple of days (sometimes the same day). Again, we make our living by taking the risk to buy the house with our own cash, repair the house, and market it ourselves to find a buyer.

Our process is rather simple. We look at the location, what repairs are needed, condition, and values of comparable houses sold in the area recently. We take everything into consideration… and come up with a fair price that works for us and works for you too.

We buy houses in your area that fit our buying criteria. From there we may repair the house and resell it to another homeowner or keep it as a rental ourselves. We also have a team of agents so if listing the home is something you are looking to do we can help you with that as well.

With mortgages ranging from 15 to 30 years, chances are your current loan isn’t fully paid off when it comes time to sell. No worries! Our cash offer includes paying off your existing mortgage so that you can walk away with cash in your pocket!