Glossary

Subject-To

A purchase where the buyer takes title "subject to" your existing mortgage, the loan stays in your name while they make payments. You transfer the house but keep the debt and the foreclosure risk.

A subject-to deal is not a loan assumption (the lender hasn't released you) and not a normal sale (the loan stays in your name). If the buyer stops paying, it's your credit that's damaged and your name in foreclosure, even though you no longer own the home. The due-on-sale clause also creates risk: the lender can call the full balance due if they notice the transfer.

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