Subject To the Existing Mortgage: What You Need to Know

selling my house Sacramento subject to the existing mortgage
How to “Selling my house subject to the existing mortgage”?
Are you currently in a position where you’ve been trying to sell your home, but aren’t having any luck in today’s real estate market? If so, then you might want to consider the option of selling your house subject-to the existing mortgage. By doing so, you can get your home off yours hands more quickly and in a more affordable manner. Not sure what a “subject-to” home sale entails? Read on to learn more.

How do I Sell My House Subject To the Existing Mortgage?

Essentially, a “subject-to” is any mortgage, where the home sale is subject to the existing mortgage. This means that the buyer of the home takes over the title to the property (usually with a land trust), the seller keeps the existing mortgage in place. Essentially, the buyer makes payments on the home loan just as the seller would have, but there is no legal transfer of the mortgage from the original owner’s name into the new owner’s name.

What Are the Benefits of Such a Mortgage?

Of course, you might be thinking, what are the benefits to me as the seller?

When you sell your home subject-to your existing mortgage, you can enjoy a number of benefits. For starters,

  1. SIMPLE AND EASY PROCESS: With such a home sale there is no need for an appraisal or closing costs, since there is no transfer of mortgage holder.
  2. SAVE MONEY: As a result, home sellers can save thousands of dollars, because there are NO upgrades needed to sell your house.
  3. FAST SALE:  Furthermore, the process of closing on a home with subject-to existing financing is much quicker, which is great for those who may have otherwise had a hard time selling their homes in a pinch.
  4. DEBT RELIEF: Someone else pays your debt for you every month. You can login to your online statements to verify payments are being made every month.

For example, let’s say you’re trying to sell your home quickly, but you know it needs some work. As a result, you’re having a hard time finding serious buyers. At the same time, you’re already in the process of moving, so you want to get the burden of your existing home off your hands as quickly as possible. This is where a subject-to sale of your home can be a huge benefit.

Where to Start Selling My House “Subject To the Existing Mortgage”?

To sell your home subject to the existing mortgage, the first thing you’ll need to do is to find a reliable buyer. Generally, these types of buyer are real estate investors who have a lot of experience in creative financing. If your buyer has a proven track record of 10 years or more, you will have a lot more confidence that your mortgage payments will be made each month in a timely matter, and that your credit score could probably improve as a result of your buyer making payments on your behalf every month.

Once you’ve found a reliable buyer, all that’s left to do is to sign a contract and transfer the title of your home over to the new owners. From there, you can enjoy the peace of mind of having your mortgage payments made without the need for a lengthy closing process.

If you’re interested in selling your house subject-to the existing mortgage and looking for a reputable, experienced buyer, please contact us today. We’re interested in all homes in Sacramento regardless of their current condition. We have done thousands of transactions of the sort of subject to the existing mortgage.  Let us help you get your home sold as soon as possible.

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