Selling Subject To – The Pros

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Let’s Sell To – The Pros

When it comes to real estate transactions, selling a home subject to is not considered traditional. Exploring this option and its pros, however, is worth your time as it could save you thousands of dollars. In one of our recent posts we shared the things to lookout for; in this post, we share the pros of selling real estate subject to. But first, here’s a quick refresher on what selling subject to means: this allows a buyer to purchase your property by taking over your existing mortgage with all its terms, responsibilities, liabilities, and interest rate.

Can Selling a House Subject-To Repair Credit?

A few things happen at the closing table when selling subject to. First, the seller signs a warranty deed over to the buyer but the mortgage stays in place in the name of the seller. The most significant pro of selling subject to is that any late and missed payments are made so that the mortgage is brought back to current. Almost as beneficial is that the buyer then begins making regular, on-time mortgage payments on the seller’s behalf which results in the seller’s credit improving. If you are selling subject to because of a divorce or bankruptcy, this credit building pro could be the next best thing to getting cash from the sale. Another pro of selling subject to is that a seller typically gets to continue to write off the mortgage interest against their personal taxes each year. Take a closer look at the details of writing off home loan interest.

The Seller’s Advantage

Selling subject to is an excellent way to sell your house quickly because negotiating time between you and the buyer is shortened as the loan terms are already in place and the buyer does not have to obtain lender approvals. Selling subject to also allows you to sell with no hidden fees, no closing costs, and no commission fees that a seller would typically pay when selling traditionally.

The Cash Advantages of Selling Subject To

How about some cold hard cash? The difference between the mortgage balance and the negotiated sale price is the cash you will receive at the closing table. So, if you’re looking for the easiest, quickest, and most efficient way to sell a house that will net you the most cash, then selling subject to is your go-to option. Contact us to get your subject to sale started today!