What the heck is a subject to?A subject to is quite simply you basically sign your loan over to another person.
The person that "buys" your home doesn't get new financing, and puts your loan into a trust.
The person who is buying the home like this is hoping that the bank will not exercise the "due on sale" clause. Saying that the loan is due if there is a change in ownership.
Most banks will not care if this happens. As long as the bank gets their payment, they are totally happy.
This can be a great way to sell your home, but it could have a down side also. If the investor doesn't make the payments, it is still your credit that they are using.
The investor can tell you that they guarantee payments, but by now you probably have figured out that there are not guarantees in life.
But under the right circumstances, if you find a responsible investor who you trust, and who has a good reputation, this might be a good way to sell your home.
Ownership transfers to the buyer, but the loan stays in your name.
Usually the investor would only do this short term. They might use your credit for 1 year until they can find a buyer to pay off the loan and get new financing on the home.
It can be a good short term strategy that works out good for the investor because they don't have to try and get a loan.
It works out good for the buyer because they might not be able to sell there home any other way.
If this is a situation you are open to, call me at 208 589 5599.
I might be able to help you get connected with investors that would be interested in this type of situation.
Generally the investors are interested if there is some equity left on the table so they can make money.
Thanks Burke Bennett
