When you’re behind on your mortgage and owe close to what the house is worth, a regular sale often can’t fix it: after commissions and closing costs, there’s nothing left, or you’d have to bring money to closing. That’s where a subject-to purchase can help.
Two Recent Florida Deals
Winter Haven, Polk County
The homeowner was facing foreclosure. We bought the house subject to the existing mortgage, took over the payments, and the foreclosure stopped.
Tavares, Lake County
Same situation, different county. We bought subject to the existing loan, took over the payments, and the house was saved from foreclosure.
What “Subject-To” Means
In a subject-to purchase, ownership transfers to the buyer, but the existing mortgage stays in place, in the seller’s name. The buyer makes the payments from then on. If the loan is behind, the buyer usually brings it current as part of the deal.
What Sellers Should Know
- The loan stays in your name. Your credit depends on the buyer making every payment, so work with a buyer you can verify.
- Due-on-sale clause. Most mortgages let the lender call the loan due when the property is transferred. Understand that risk and how the buyer would handle it.
- Get it in writing and reviewed. Have an attorney review the agreement before you sign.
Done right, subject-to can stop a foreclosure, protect your credit from a completed foreclosure, and let you move on when a normal sale can’t. Read our plain-English subject-to guide for more.
Florida Foreclosure Gives You Time. Use It.
Florida foreclosure is judicial: the lender files a lawsuit, and the sale is set by the court. That usually leaves a window to act, but it closes. We buy in Winter Haven, Tavares, Davenport, Orlando and across Central Florida.
Selling a house in or near Winter Haven or Tavares? Call (786) 982-8464 or get your free cash offer online. See our Winter Haven or Tavares page for more.
Subject-to purchases leave the existing loan in the seller’s name, and most mortgages have a due-on-sale clause. Every seller should have an attorney review the agreement. See our plain-English subject-to guide.
The address and the owners’ names are kept private. This article is general information, not legal advice.