Mortgage Buyouts (Subject-To): Sell When You Owe Close to What It Is Worth
Sometimes a house will not sell for enough to pay off the loan and pay an agent. A mortgage buyout, often called a "subject-to" sale, solves that problem. We buy the house "subject to" your existing loan. The deed transfers to us, and we take over making the monthly payments.
This is one of the most misunderstood ways to sell, so we explain it plainly below, including the risks. We want you to understand it fully and to have your own attorney review it if you like.
Get your no-obligation offer
Three quick steps. We will call to talk through cash, mortgage buyout and owner financing options.
$0 commissions or fees
No repairs, no cleaning
You pick the closing date
Local to DFW and NE Texas
This may be a fit if...
- You owe close to what the house is worth
- You are a few payments behind and want to get caught up and out
- You need to move but cannot afford to bring cash to closing
- You have a low interest rate that has real value to a buyer
What you gain
- Sell even with little or no equity, without bringing cash to closing
- Past-due payments can often be caught up as part of the deal
- No agent commissions eating into a thin margin
- Faster than a short sale, which needs lender approval
How it works
- 1
Review your loan together
We look at your balance, payment, rate and any missed payments.
- 2
Agree on terms in writing
We spell out who pays what and when, in plain language.
- 3
Close at a title company
The deed transfers to us. Any past-due amount can be brought current at closing.
- 4
We make the payments
We take over the monthly payments on your loan, and you move forward.
The honest trade-offs
Every option has a downside. Here is what to weigh before you decide.
- The loan stays in your name until it is paid off or refinanced. Your credit depends on the payments being made on time, so ask any buyer how you can verify payments.
- Most mortgages have a "due-on-sale" clause. It gives the lender the right to call the loan due when the property is transferred. Lenders rarely do this when payments are current, but the right exists, and you should know about it.
- Texas has specific disclosure rules for these sales. We recommend having a real estate attorney review your paperwork. You are always welcome to.
How this compares to your other options
| Feature | Fast Cash Offer | Mortgage Buyout | Owner Financing | Listing with an Agent |
|---|---|---|---|---|
| Best when | You want speed and certainty | You owe close to what it is worth | You own it free and clear | Home is updated and you can wait |
| Price | Below retail, as-is | Debt relief plus agreed terms | Often highest of our options | Full market price, if it sells |
| Agent commissions | None | None | None | Often 5% to 6% |
| Repairs and showings | None | None | None | Usually required |
| Typical timeline | A few weeks | A few weeks | A few weeks to close, paid over time | Often 2 to 4 months or more |
| How you get paid | Lump sum at closing | Loan taken over, possible cash | Down payment plus monthly payments | Lump sum, minus costs |
General comparison only. Every property is different, and we will show you real numbers for yours.
Available across our service area
Mortgage Buyout (Subject-To) is available in all four markets we serve, plus the towns around them.
Go deeper
Mortgage Buyout (Subject-To): common questions
What does "subject-to" mean?
It means we buy your house subject to the existing mortgage. The deed transfers to Hidden Leaf Holdings, the loan stays in place, and we make the monthly payments going forward.
Will a mortgage buyout affect my credit?
The loan stays on your credit report, so on-time payments help it and late payments hurt it. That is why you should always be able to verify the payments. Call (214) 555-0147 and we will explain how that works on your deal.
What is the due-on-sale clause?
It is a part of most mortgages that lets the lender call the loan due if the property changes hands. Lenders seldom use it when payments are current, but it is a real risk that we disclose up front.
Can I do this if I am behind on payments?
Often, yes. The past-due amount can usually be brought current at closing as part of the deal. The sooner you call, the more options you have before a foreclosure sale date is set.
Is a subject-to sale legal in Texas?
Yes, transferring property subject to an existing loan is legal in Texas, and Texas requires certain written disclosures. Hidden Leaf Holdings encourages every seller to have an attorney review the documents. Call (214) 555-0147 with questions.
Talk to Chase about your options
Cash, mortgage buyout or owner financing. We will lay out the numbers for each, with no pressure and no obligation.