It means you're selling your home, transferring the deed to the buyer, but your mortgage stays in your name. The buyer agrees to make payments on your mortgage without formally assuming the loan through the lender.
There are many reasons, perhaps:
It’s often used as a creative strategy in tough situations when traditional sales or refinances won’t work.
No. Most sellers do not notify the lender, but the mortgage likely contains a due-on-sale clause, allowing the lender to call the loan due if they find out. That said, lenders rarely enforce this unless payments stop or interest rates rise significantly.
Yes — if the buyer performs as agreed and keeps the loan current. It can be a win-win, especially if you're behind on payments or out of options.
Once the deed transfers, the buyer typically assumes tax and maintenance responsibility.
In a “subject to” transaction, you purchase a property subject to the existing financing — meaning the seller’s mortgage stays in place, but you take control of the property and make the payments. You do not formally assume the loan with the lender.
No. One of the benefits of a “subject to” deal is that you do not need to qualify with the lender or provide your credit/income documents. The existing loan remains in the seller's name, so no lender approval is required from you.
You, the buyer, are responsible for making the payments — either directly to the lender or via an escrow service. However, the loan remains in the seller’s name.
Yes. You take title (ownership) to the property, and the existing mortgage remains in place under the seller’s name.
Yes. As the legal owner, you can rent, renovate, or resell the property. However, make sure the original loan stays current to avoid foreclosure.