Subject To – Purchasing Options For Selling Fast

Time To Sell House Posted on May 22, 2020 Posted by Will

As an owner looking to sell there are so many options at your feet. With all of the information surrounding subject to selling – we want you to weigh the pros and cons of this option to sell your house.

There is a chair at the decision table that points in many different directions.

Taking the traditional route with a realtor puts your house sale on their timeline. Exploring the ‘For Sale By Owner’ route and the many obstacles you will have to overcome on your own with no guidance. Finally, selling to a local house buyer like FixerUpper4Cash. We are known for fast cash offers on houses. However, we like to present our clients with a variety of options that may fit their desire to sell fast.

We often come across clients who are wanting to sell quick but don’t have enough equity in their home for our cash offer to pay off the existing note. This is where the subject to comes into play.

The Breakdown

In the simplest terms, selling subject to can lift a mortgage immediately off your shoulders. There are a few differing varieties of someone purchasing your existing mortgage. There is subject to with cash, subject to with seller carryback, and wrap around subject to. The bottom line of subject to is a buyer assumes your loan payments, obligations, and responsibilities to your mortgage company. Your loan terms and rates are transferred over to the buyer. The terms between the seller, the buyer and the mortgage company all depend on which route of subject to that you choose. Subject to is attractive for sellers and buyers as a quick purchase transfer. For a seller looking to get out from under a mortgage with a house that does not carry enough equity to pay off the note, this is probably the best option.

T E R M S

While there are specific terms in a lender’s contract, a mortgage company just wants to ensure that payments are still

being made on the loan. Depending on which subject to selling option you pick, an owner can sell their house subject to without notifying their mortgage company. With some of the calculated risks for both the buyer and the seller, it’s best to complete the process of a loan assumption by notifying your bank. This ensures that the buyer is qualified to assume the loan and in turn lowers the risk of them not being able to pay the loan off.

FixerUpper4Cash is ready to become qualified with your mortgage lender today! If a subject to purchase is seeming more attractive as you read on, just answer a few short questions. We would be happy to get the process started with you.

Jumping to Assumptions

There are a few ways that you can find out whether your house loan can be assumed through a subject to purchase. The terms of a loan assumption can be found in the lender’s loan documents. There are two areas to look for. Browsing through the ‘assumption clause’ and the ‘due on sale clause’ you should be able to find information on whether you can do a subject to purchase. If it is still unclear after looking through the documents, it’s best to call the lender directly and ask if it’s possible. With FixerUpper4Cash we are happy to take care of that part of the selling process. After going through options and agreeing to sell to us, we handle the rest! Click here for a great resource on assumable loan information.

Subject to opens up a variety of options for sellers who may not have the right equity in their home to pay off a mortgage. The good news? we can still make a cash offer on your home. Contact FixerUpper4Cash to see what all-cash offers we have waiting for you.

In our next blog we will dive deeper into more of the PROs of selling subject to. Don’t miss the rest of this insightful information on selling subject to, keep an eye on our blog page. In the meantime, take a peek at your current mortgage statement and then give FixerUpper4Cash a call!