What is Subject-To (SubTo)?

Understanding Subject-To Real Estate Transactions

A Subject-To (SubTo) real estate transaction is a unique and beneficial method for buying and selling properties. In a Subject-To deal, the buyer acquires a property subject to the existing financing arrangements. This means the buyer takes over the mortgage payments, but the loan remains in the seller's name.it will
provide an opportunity for passive income, as the property remains an asset generating consistent cash flow.

Key Features of a Subject-To Transaction:

Existing Mortgage

The buyer takes over the existing mortgage payments without needing to qualify for a new loan. This can speed up the purchasing process and eliminate the need for bank approvals.

Seller Benefits

Sellers can quickly offload properties, avoid foreclosure, and potentially receive some equity without the lengthy process of traditional sales.

Buyer Benefits

Buyers can acquire properties with minimal upfront costs and avoid the stringent requirements of obtaining a new mortgage. This method is especially beneficial in markets with tight credit conditions.

How Does a Subject-To Transaction Work?

Agreement

The buyer and seller agree on the terms of the sale, including the purchase price and any additional financial arrangements.

Mortgage Payments

The buyer begins making payments on the seller’s existing mortgage, taking over all associated responsibilities such as insurance and taxes.

Deed Transfer

Ownership of the property is transferred to the buyer, but the mortgage stays in the seller’s name until it is paid off or refinanced.

Equity and Cash

If there is equity in the property, the buyer may provide a cash payment to the seller at closing.

Why Choose a Subject-To Transaction?

Speed and Efficiency

Transactions can be completed quickly, making it an ideal solution for sellers looking to avoid foreclosure or needing to sell fast.

No New Loan Needed

Buyers do not need to qualify for a new mortgage, bypassing traditional lending hurdles.

Credit Profile Improvement

As the buyer makes payments, the seller's credit profile can improve due to consistent mortgage payments.

Considerations and Protections

Due Diligence

Both parties should conduct thorough due diligence to ensure clarity on all terms and conditions.

Payment Protection

Mechanisms can be put in place to protect the seller, such as Quit Claim Deeds, to ensure property reclamation if payments are missed.

Legal Advice

It is recommended to consult with real estate professionals or legal advisors to navigate the complexities of Subject-To transactions.

Prime Haven Capital and Subject-To Transactions

At Prime Haven Capital, we specialize in Subject-To transactions, offering a seamless and efficient way for property owners to sell their homes. We take over existing mortgages, handle all associated costs, and provide a smooth transition for both buyers and sellers. Our experienced team is dedicated to ensuring transparency, security, and satisfaction in every deal.

Prime Haven Capital

Unlock your real estate potential with Prime Haven Capital. We specialize in property acquisitions, buy-and-hold strategies, and private money loans. Experience seamless transactions and tailored financial solutions. Contact us today to learn more.