Question 1

Does the loan stay in the seller's name after closing?

Accepted Answer

Yes. That is structurally how a subject-to existing mortgage takeover (Subject-To, for short) works. Title transfers to us, but the existing mortgage stays in place, in the seller's name, with the same rate and balance the seller originally signed. Three things make that workable. First, every monthly payment routes through an independent third-party loan servicer that sends written verification to the seller each month — they see the payment hit, in writing, on a separate paper trail from us. Second, our payment guarantee is recorded at closing — if we ever miss, the seller takes the house back through foreclosure, with the property itself as collateral. Third, on-time payment history continues to register on the seller's credit report as a positive tradeline. What we don't do: we don't promise the loan comes off the seller's name. The honest answer is that it stays — that's how the structure works — and the protections are around the loan, not a promised exit from it. If the seller specifically wants a buyer who will refinance into their own name, we are not the right fit and we'll say so.

Question 2

Why doesn't your offer look like the other cash offers we've gotten?

Accepted Answer

Because we are not a cash buyer. The cash-buyer math is structurally different from ours. A cash buyer must offer 60–70 percent of fair market value to recover the capital they're deploying — the cash they pay for the home, the holding costs, the rehab, the resale costs, and a profit margin on the back end. To make that math work, they need the discount. We don't deploy capital on the loan portion. We take title and the existing mortgage stays in place, with us making the payments going forward. The cash-discount math doesn't apply to our business model. So we typically pay full market value because we structurally don't need a cash-buyer haircut.

Question 3

What protects the seller in a Sub-To deal?

Accepted Answer

Two named protections, written into the closing documents — not 'trust us.' First, third-party payment servicing. Every monthly mortgage payment routes through an independent loan servicer — a separate company whose only job is to receive our payment, send it to the lender, and report. The seller receives written verification from the servicer every month. We are not handling the money directly between buyer and lender; an independent paper trail sits between us. Second, positive credit tradeline. Because the loan stays in the seller's name and the payments continue on time, the on-time payment history continues to register on the seller's credit report as a positive tradeline for as long as the loan is in place.

Question 4

Will you use a third party to make the payments?

Accepted Answer

Yes. Every monthly mortgage payment routes through an independent third-party loan servicer — a separate company whose only job is to receive our payment, send it to the lender on schedule, and report the transaction to all three parties. The seller receives written verification from the servicer each month: who paid, when, how much, to whom. The paper trail is independent of us. We are not handling money directly between buyer and lender; the servicer sits between us and provides the receipts. This is one of three named pieces that protect the seller. The other two are our payment guarantee (recorded foreclosure rights against us if we miss) and the positive credit tradeline that continues registering on the seller's credit report.

Question 5

How fast can you actually close?

Accepted Answer

Six-day average from offer to deed across the closes we've done. Every one of those has closed in under a week. The number is auditable; when the next deal closes the average updates. The reason it's fast is structural. There is no bank application on our side, no appraisal contingency, no rate-lock window, no underwriting file to push through committee. The mortgage that funds the deal is already there. What slows down a Subject-To close is title work, document preparation, and the seller's own timeline — not financing.

Question 6

What does this cost the seller? Are there hidden fees?

Accepted Answer

$0 to the seller at the closing table. Your seller pays nothing on the buyer side, and we cover the seller-side closing costs — title-company fees, transfer taxes, recording fees, prorations. We don't add a 'buyer convenience fee' or a 'service fee' or a 'program fee' on top. The number on the offer is the number; the closing statement reflects that. If you have an agent, the agent's full commission — typically 3 percent — is paid from our down payment at closing. That comes out of our money, not yours.

Question 7

Is Subject-To loan fraud?

Accepted Answer

No. No false statements are made to any lender. No new loan is created. No application is submitted, no underwriting is performed, and no representations are made to anyone other than the parties to the sale. Subject-To is a well-established legal structure routinely closed by title companies and real estate attorneys. Mortgages have contained due-on-sale clauses for decades; the legal infrastructure handles Subject-To transfers as a matter of routine. What's happening is: title transfers from seller to buyer, and the existing mortgage stays in place per its existing terms. Both parties know about it. The title company records the documents. There is no concealment, because nothing is being concealed.

Question 8

What about the due-on-sale clause?

Accepted Answer

The clause exists. It gives the lender the right (not the obligation) to call the loan due upon transfer of title. In practice, lenders rarely call loans current on payments. The mortgage industry has known about Subject-To for decades and the legal infrastructure handles it routinely. We commit contractually to keep your loan current — every monthly payment, on time, every month, with monthly written verification from the third-party servicer. The seller's name stays on the loan, structurally. We commit contractually to keep every payment current — backed by a third-party servicer who sends the seller monthly written verification. We say 'rarely,' not 'never.' We do not say 'the bank won't notice.' We do not say 'the bank can't do anything.' Both of those framings are dishonest, and informed sellers and agents can spot them.

Question 9

Do you need bank approval to close?

Accepted Answer

No. Subject-To does not require bank approval. The existing loan stays in place per its existing terms; we don't apply to the bank, refinance, or assume. The lender continues to receive the same payment, on the same schedule — only the source of the payment changes.

Question 10

Is there an escrow deposit or proof of funds?

Accepted Answer

The traditional-purchase versions don't apply cleanly. There is no bank application, so there is no proof-of-funds in the conventional sense — no underwriting file to attach a POF letter to. What protects the seller instead: our payment guarantee recorded at closing (foreclosure rights against us), the third-party loan servicer (independent monthly verification), and the structural fact that we take title and operate the property long-term — we are not flipping it back to an investor on assignment. If your seller's attorney wants escrow language structured a particular way at closing, we'll work with the title company to accommodate. The structure is flexible at the closing table; what's not flexible is that we don't apply to a bank.

Question 11

What if the seller has equity above the loan balance?

Accepted Answer

We pay it. When the home is worth more than the existing mortgage balance, we layer a carryback note on top of the Subject-To. We take title Subject-To the existing mortgage, pay the seller a cash down payment at closing, and the remaining equity becomes a carryback note from the seller to us — typically a 5 to 7 year balloon, at low or no interest. Two instruments, one transaction. The Subject-To is the mortgage instrument; the carryback is the seller-financing instrument. They coexist at closing.

Question 12

What about VA, FHA, or assumable loans?

Accepted Answer

We offer Subject-To, not formal loan assumption. If the seller (or their agent) specifically wants a buyer who will assume the existing loan into their own name through the lender's formal assumption process, we are not the right fit and we'll say so up front. VA loans deserve a specific note: VA entitlement can be tied to the loan in ways that some sellers want preserved and others don't mind. If the seller cares about VA entitlement specifically, the formal assumption path may matter to them more than the Subject-To path. We can discuss; if the structure doesn't fit, we send them elsewhere rather than push.

Question 13

Do you assign the contract to another buyer?

Accepted Answer

No. We close on title and we hold the property long-term. We are not a wholesaler. The contract is in our name; the deed is in our name at closing; the home is bought, not relisted to an investor network.

Question 14

How long does this stay on the seller's credit report or in their name?

Accepted Answer

The mortgage stays in place, as-is, until the property is sold again or the loan is paid off some other way. We don't refinance into our own name and we don't promise to. That is the honest structural answer. Seller protection comes from the three named pieces — our payment guarantee, third-party servicing, and positive credit tradeline — not from a refinance promise that we won't keep. The on-time payment history continuing on the seller's credit is a feature of the structure, not a bug. If a seller specifically needs the loan off their name on a defined timeline, they need a buyer who will refinance or formally assume. That is a different transaction than what we do, and we'll say so.

Question 15

We can help you avoid foreclosure through a Subject-To sale — what does that mean in practice?

Accepted Answer

If your situation fits the structure, we can take over the existing mortgage payments and close before a trustee's sale date, which moves the lender's foreclosure clock. The setup is the same as on any other Subject-To: title to us, the loan stays in place, payments resume on time through the third-party servicer, our payment guarantee is recorded. What we don't say: 'guaranteed stop foreclosure.' That phrasing is FTC-actionable and we don't use it. Whether we can close before a specific auction date depends on the date, the lender, the title work, and the seller's situation. The honest answer is 'if deal structure fits, we close in 15 days — call us early enough that the timeline works.'

Question 16

We are not a fit. Can you refer us elsewhere?

Accepted Answer

Yes. If Subject-To isn't the right structure for your situation — for example, you specifically need a buyer who will formally assume the loan, or you specifically want a cash transaction — we'll tell you and, where we can, point you at the path that fits. We'd rather send a seller to the right answer than push them into the wrong one.

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