{"id":754,"date":"2018-02-13T06:18:29","date_gmt":"2018-02-13T06:18:29","guid":{"rendered":"http:\/\/www.realestatewords.com\/?page_id=754"},"modified":"2022-08-15T13:25:35","modified_gmt":"2022-08-15T13:25:35","slug":"buying-subject-to","status":"publish","type":"page","link":"https:\/\/www.realestatewords.com\/buying-subject-to\/","title":{"rendered":"Buying Subject To"},"content":{"rendered":"

Buying ‘Subject To’ Definition<\/h2>\n

Buying a property \u2018subject to\u2019<\/strong> means that the buyer takes over the seller\u2019s mortgage<\/a> and has the title to the real estate<\/a> transferred to them. At the same time, the seller\u2019s name stays on the mortgage.<\/p>\n

Explanation<\/h2>\n

In real estate, buying \u2018subject to\u2018 is a creative strategy that allows a buyer to acquire properties without the need to get bank financing<\/a>.<\/p>\n

Typically, the seller has fallen behind on their house payments, and the house is in preforeclosure or they have little to no equity<\/a>.<\/p>\n

The seller agrees to sell by allowing the buyer to take ownership of their property and by leaving the mortgage in place.<\/p>\n

At closing with the seller, title is transferred but the loan<\/a> stays in the seller’s name leaving them legally liable for the loan. It means the seller\u2019s mortgage does not get paid off at closing<\/a>.<\/p>\n

Instead, the buyer agrees to take over the seller\u2019s payments on the mortgage.<\/p>\n

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