Are you a homeowner struggling with the burden of high monthly mortgage payments? Whether you’ve lost a job, had an unexpected medical issue, or just hit a rough patch, situations arise where you find yourself strapped for cash and need to get out from under stressful loan payments. This can lead to worry about possible foreclosure, and you may be frantically searching for advice – “How do I sell my house fast?!”
We’re here to help by providing you with everything you need to know about the “subject to method” of selling your home. This method is a lifesaver for homeowners who need to shed hefty monthly payments but just don’t have the time to sell their house on short notice. This is a very popular option in today’s real estate market, as an increasing number of people turn to this method when they’re strapped for time and cash.
In this article, we provide you with the facts, including the pros and cons of using the “subject to” approach, so you can make the right choice for you and your family.
What Is the “Subject To” Method?
While it may sound complicated, selling your home via the “subject to” method is actually very simple – the buyer agrees to take over your monthly mortgage payments. Your ownership interest transfer to the buyer, but the note remains in your name. That’s all there is to it! There’s no middle-man (realtor, bank, etc.) involved in the sale, which makes the process very fast. And don’t worry, the “subject to” method is completely legal.
We want you to have all the facts. So, let’s look at the pros and cons of selling your house with this approach.
Advantages of selling your home using the “subject to” method:
Improve your credit as buyer makes timely payments each month
Avoid bankruptcy or foreclosure
Faster than traditional options
Skip the hassle of an inspection and repairs
Eliminate costly mortgage payments
Reduce closing costs
Disadvantages of selling your home using the “subject to” method:
Loan may be called due by the lender. However, there are options if this happens – for example, the loan can be refinanced or paid off by the buyer.
Potential credit risk (but only if the buyer defaults on the loan). But remember, a buyer is typically making a significant financial investment when they purchase a home using this method. For instance, they’ll likely incur some closing costs, catch up on any overdue payments, and/or make repairs to the home. Because they have “skin in the game,” so to speak, they’re less likely to default on payments.
As you can see, there are a lot of advantages to selling your home using the “subject to” method. If you find yourself unable to keep up with your mortgage payments and headed for foreclosure, here’s the good news – we buy houses! And we’re happy to talk with you about your situation, answer any questions, and discuss buying your home using the “subject to” method.
Our goal is to help you make an informed decision. And if you decide your best option is to sell your home fast, we’re ready to give you a no-hassle offer. Visit our website below or give us a call.
Houston Fast Home Buyers