Know the factsSubject-to home sales
Someone offers to take over your mortgage payments. You sign the deed. Here is the part that is easy to miss: the house changes hands, and the loan does not.
Who is responsible for the home and loan
The deed and the mortgage are separate. In a subject-to sale, the buyer may own the home while the seller remains responsible for the mortgage. This creates different risks for the seller and buyer.
The seller who transfers the deed
The buyer who receives the deed
Five steps before you sign anything
Take time to get answers from people who are not involved in the sale and do not benefit from it closing.
Gather all the documents
Collect the loan documents you signed, including your mortgage or deed of trust, along with your latest statement, current insurance information, and every proposed agreement. Ask for every document. Do not rely only on a summary or verbal explanation.
Call your mortgage servicer
Use the number on your statement. Ask whether the buyer can formally take over the loan, whether you would remain responsible, what approvals are required, and how transferring the deed could affect the loan. Ask for written information when available.
Ask the buyer to explain the plan in writing
Ask when the deed would transfer, who would make and document payments, how taxes, insurance, and association charges would be handled, how you could confirm that payments are being made, and whether the buyer plans to pay off or refinance the loan by a certain date. Have someone who represents you review the written answers.
Choose your own independent help
Have a local attorney you choose review the documents and explain how state and local law affects you. If you are behind on payments or having trouble making your mortgage payments, a HUD-approved housing counselor can help you understand your options. Talk with your own tax or financial professional about any tax or financial questions.
Confirm the closing and what happens afterward
Before signing, confirm who will handle the closing, what insurance will be in place, how you will receive proof of payments, and where you can get copies of recorded documents. Do not assume the buyer's agent, attorney, title company, or other representatives work for you.
If you have already signed
A missed payment, notice, or disagreement does not always lead to the same result. What you can do next depends on the documents, the loan status, and local law.
Gather your records and get independent help
Collect everything you signed, a copy of the recorded deed if you can get one, payment records, insurance notices, and messages about the arrangement. Call your mortgage servicer using the number on your statement. Ask about the current loan status and what you should do next. Then talk with an independent local attorney. A HUD-approved housing counselor can also help, and a VA loan representative can answer questions about a VA-backed loan. If you received court papers or a notice with a deadline, mention the deadline when you ask for help.
Where to get independent help
These organizations can explain the help they offer, but they cannot guarantee what will happen in your situation.
Your mortgage servicer
Use the number on your most recent mortgage statement or the servicer's verified website. Ask about the current loan, the proposed deed transfer, whether the transfer needs approval, and what help the servicer can provide.
HUD-approved housing counseling
HUD lists approved housing counseling agencies and certified counselors across the country.
VA home loan assistance
If the existing loan is guaranteed by the VA, contact the VA with questions about whether the seller remains responsible for the loan, how the sale could affect the seller's remaining VA home loan benefit, or trouble making payments.
Independent local legal help
Look for a real estate attorney licensed in the state where the property is located. A state or local bar association may list lawyer-referral programs or free and low-cost legal help.
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