What does it mean to sell subject-too?

When a home is sold "subject to" it means that the buyer is assuming the existing mortgage and the seller is remaining responsible for the outstanding debt on the mortgage. This type of sale is also known as "subject to existing financing" or "taking overpayments". This can be a good option for buyers who want to purchase a home but are unable to qualify for a mortgage or for sellers who are having trouble selling their home.

Advantages of selling a home "subject to" include:

Faster sale: The sale can happen faster, since the buyer does not need to go through the process of obtaining a mortgage.

Keeps seller from losing home to foreclosure: In some cases, the seller may be facing foreclosure, and by selling the home "subject to" the seller is able to avoid foreclosure and get some money from the sale of the home.

Allows buyers to purchase a home: For buyers who are unable to qualify for a mortgage, this option allows them to purchase a home.

Disadvantages of selling a home "subject to" include:

Risk for the seller: The seller remains responsible for the outstanding debt on the mortgage, and if the buyer stops making payments, the seller may be held liable.

Limited market: This type of sale may appeal to only a limited pool of buyers who are looking for a home but are unable to qualify for a mortgage.

Lack of control: The seller loses control of the property after the sale, and if the buyer stops making payments, the seller may not be able to take any action.

It is important to consult with a real estate attorney to ensure that everything is done correctly, and that the seller is protected in case the buyer stops making payments on the mortgage.