Subject To Real Estate: A Complete Seller’s Guide For 2024

Are you tired of dealing with the hassle and uncertainty of traditional real estate transactions? Do you want to sell your house quickly, avoid costly repairs, and minimize the risk of foreclosure?

If so, then you’re in luck! Subject To Real Estate is a game-changing solution that can help you achieve your goals and get out from under a burdensome property. In this comprehensive subject to real estate sellers guide, we’ll explore everything you need to know about Subject To Real Estate, including what it is, how it works, and why it’s an attractive option for sellers like you.

Key Takeaways

  1. Subject To deals can close quickly, often in as little as 7-10 days.
  2. Only do subject to deals with experts who can explain the entire deal structure and know what to look out for.
  3. Even if you have already hired a real estate agent a subject to deal can still be done.
  4. Subject To deals offer flexibility and can be structured to meet your needs.
  5. The subject to line item can be found on the official HUD settlement statement on line #203.

In this subject to seller guide, we’ll cover the following topics:

  1. What is Subject To Real Estate?
  2. How does Subject To Real Estate work?
  3. Why would a seller do a Subject To deal?
  4. What are the benefits of Subject To Real Estate?
  5. How to negotiate a Subject To deal
  6. Common misconceptions about Subject To Real Estate
  7. Subject to FAQs

What is Subject To Real Estate?

Subject To Real Estate is a type of real estate transaction where the buyer takes over the existing mortgage on the property, rather than obtaining a new loan. This means that the seller’s name remains on the mortgage, but the buyer becomes responsible for making the monthly payments. The term “Subject To” refers to the fact that the sale of the property is subject to the existing mortgage.

Selling my house with a subject to offer was the only way for me to sell my house without having to come to closing with a $20,000 real estate agent couldn't find a family to buy my house.

How Does Subject To Real Estate Work?

Here’s an example of how a Subject To deal might work:

Subject to deal examples are an enlightening way to illustrate the practical applications of this unique investment strategy. Let’s delve into an illustrative example which highlights the benefits of a “subject to” transaction.

Real Life Subject to Example #1: 

In a challenging scenario, sellers in Indianapolis, IN faced a tough real estate market shortly after purchasing their property. In 2021, they optimistically bought a house with a low down payment FHA loan during the market peak. Fast forward to a year later, an unforeseen job relocation to Atlanta necessitated a hasty sale. Despite listing with an agent, their home languished on the market for over 40 days without a single offer. Setting a higher listing price was the agent’s strategy to cover potential losses from commissions and closing costs, but this only detoured potential buyers. 

That’s when we contacted the listing agent and presented a subject to offer which ended up being the seller’s saving grace. By presenting a *subject to* offer, we were able to alleviate the seller’s financial burden. We structured a deal that was a win win situation as we covered the agent’s commission, closing fees, and even allowed the sellers to pocket some cash at closing. This real-world example highlights how a *subject to* transaction can be a problem-solver in a tight equity spot.

subject to real estate sellers guide

Real Life Subject to Example #2: 

This Las Vegas, NV property sat on the market for over two months through a with an agent, with no bites as comparable sales suggesting a value of around $430,000. Burdened with a solar loan and minimal equity from a VA loan purchase, listing below $509,000 was not an option for the seller—who stood to lose $50,000 in the process after paying both agent commission, closing fees, and since the net proceeds from the sale were much lower than what he still owed on the property.

When we stepped in with a subject to offer, it changed the game. Not only did we absorb the closing costs and agent fees, but we ensured the seller avoided those heavy losses. Instead of owing money, the homeowner walked away with $12,000 in hand. This scenario exemplifies the power and potential of subject to transactions in the right circumstances.

If a subject to offer has peaked your interested and you want to know how a subject to offer would work in your specific situation click this link or send us a text message with “Subject to Consulation” and let’s schedule a free consulation where we walk you through the structure, answer any questions you might have, and explain whether a subject to offer even makes sense in your situation. 

subject to real estate sellers guide

Why Would a Seller Do a Subject To Deal?

So why would a seller consider doing a Subject To deal? There are several reasons:

Low equity situation:

If you do not have enough equity in your property to sell it traditionally, a Subject To deal can be a great way to release yourself from the mortgage burden.

Behind on mortgage payments:

Falling behind on mortgage payments can be a stressful situation, but a Subject To deal can help you avoid foreclosure and protect your credit score. A foreclosure would stay on your credit report for 7 years making almost impossible to get financing for a car, find a new rental property, or even buy a new house. 

Failed real estate agent listing

If your property has been unsuccessfully listed with an agent, a Subject To deal can offer a fresh start and a new approach to selling your property.

No traditional offers while on market

If you have not received any traditional offers on your property, a Subject To deal could present a viable alternative option. If you need to sell rather quickly in order to move on with your life then a quick subject to offer might be a great solution if done correctly as subject to deals can be done as fast as 7-10 days. 

Most real estate agents do not know how to navigate a subject to offer and advise a seller correctly. Most just say it's a "scam" to hide their ignorance.

Benefits of Subject To Real Estate

So what are the benefits of doing a Subject To deal? Here are just a few:

Quick Sale:

Subject To transactions can be completed quickly, often within 7-10 days. In order to close as fast as possible it is essential to choose a title company who is familiar with the process of a subject to transaction. Also your buyer should be a subject to expert and guide you through every step of the transaction. 

No Repairs Needed:

Because the buyer takes over the existing mortgage payments and is most likely an experienced real estate investor, they are also responsible for any repairs or maintenance required. 

Foreclosure Risk Reduction:

If you’re behind on your mortgage payments or in case you’ve already received the foreclosure paperwork from the lender’s attorney a subject to real estate offer will stop the foreclosure process and prevent your credit score from being demolished for the next 7 years. By transferring ownership of your property and mortgage payment responsibility, you decrease the risk of foreclosure and credit score damage. 

If you’re facing foreclosure it is in your best interest to schedule a free subject to real estate consultation with us as we can help you either stay in your house for free and if that does not work we can be your plan B and buy the property from you and make sure you don’t lose the house to the bank. Most people in the same situation unfortunately wait until the last minute before they contact us and in some cases it’s unfortunately too late and we cannot help anymore. Let us help you for free to navigate the stressful paperwork and foreclosure process.


Subject To deals can be tailored to suit your specific needs and objectives. Often a subject to deal if done correctly is a win-win situation for both the seller and buyer. A rule of thumb usually is whatever you and the buyer can agree on can be put into the purchase agreement. 

Negotiating a Subject To Deal

When negotiating a Subject To deal, here are some tips to keep in mind:

Only deal with subject to experts: It is important to only deal with subject to experts as the devil is in the details. A subject to deal only works if the paperwork is done correctly, all disclosures have been made, and the seller receives a comprehensive explanation of the deal structure, the pros and cons. 

If you are intrigued by a specific subject to offer and wish to learn more about how it could work in your unique situation, please click on the link or send us a text message with the phrase “Subject to Consultation.” We will then schedule a free consultation to guide you through the process, address any inquiries you may have, and determine if a subject to offer is a viable option for your situation.

Know your numbers: It is important to be aware of your current mortgage balance, interest rate, and payment schedule. 

Set clear terms: Define the terms of the agreement clearly, including responsibilities for taxes, insurance, and maintenance.

Get everything in writing: Ensure all agreements are recorded in writing and signed by both parties. A subject to transaction involves a lot of paperwork and dealing with subject to real estate professionals is essential for all parties.  

Have more questions? Text "Subject to Consulation" to ‪(505) 456-0874‬ Schedule a FREE subject to consultation and get all your questions answered and tailored advice if a subject to offer even makes sense in your situation.

Common Misconceptions About Subject To Real Estate

There are several common misconceptions about Subject To Real Estate that we’d like to address:

Misconception #1: My real estate agent knows about subject to offers.

Fact: 99.9% of real estate agents do not know what a subject to offer is and how a subject to offer works and why it often benefits the seller more than a traditional offer. When you want to find out whether a subject to offer would benefit you either consult with a specialized real estate attorney or send us a text message with the word “subject to consulation” and we’ll walk you through everything you need to know.

Misconception #2: Subject To deals are only for distressed properties. 

Fact: While distressed properties may benefit from Subject To deals, this type of transaction can be used for any property. 

Misconception #3: Buyers will try to take advantage of me.

Fact: As with any real estate transaction, it’s crucial to work with reputable buyers and clearly outline terms. A subject to deal only works if both parties win and since the seller is taking over the seller’s mortgage payments a subject to deal can be a seen as a “marriage” as both parties will stay in contact until the buyer eventually either sells the property or does a mortgage refinance and basically pays off your initial mortgage balance.

Misconception #4: I’ll still be responsible for paying off the mortgage.

Fact: As long as the buyer makes timely payments, you won’t be responsible for paying off the mortgage.

Should You Sell Via a Subject to Offer?

In wrapping up this comprehensive guide on “Subject To Real Estate,” it’s clear that this innovative selling approach may very well be the best solution for you as a homeowner in several specific scenarios. Specifically, if you’re grappling with low equity, have experienced the disappointment of a failed listing, or you’ve hired a real estate agent and still haven’t snagged any serious offers from the conventional buyer’s market, a Subject To offer should be on your radar.

This strategy can free you from financial burdens or time constraints that traditional sales methods often impose. The beauty of a Subject To arrangement lies in its flexibility and the speed at which you can move forward with your life, unshackled from property-related woes. If you find yourself nodding along, feeling that a Subject To deal might just be the key to unlocking your real estate predicament, it’s time to take action. Don’t let uncertainty hold you back. Send us a text message with “Subject to Consultation” to ‪(505) 456-0874‬ now, and let’s get a FREE subject to consultation session on the calendar. We’re on standby to provide you with tailored information about your specific situation and detail how a Subject To deal could turn the tide in your favor. Take the reins today and discover the full potential of Subject To Real Estate for your property in 2024!

Subject to Real Estate FAQs

Here are some frequently asked questions about Subject To Real Estate:

1. Is Subject To Real Estate legal?

Yes, Subject To deals are legal and widely used in many states.

2. Can I do a Subject To deal if I'm behind on my payments?

Yes, but it’s essential to work with a reputable buyer who can help you catch up on payments.

3. Will I still own the property after a Subject To deal?

No, once the subject to deal is complete, the buyer takes ownership of the property.

4. Can I use a real estate agent for a Subject To deal?

While agents may not be familiar with Subject To deals, it’s possible to work with one who specializes in these types of transactions. To get a free subject to consultation text “Subject to Consultation” to (505) 456-0874 and speak to subject to experts who can give you all the information you need in order to make an informed decision that works in your favor.

5. Are there any tax implications for doing a Subject To deal?

It’s essential to consult with a tax professional to understand any potential implications.

Have more questions? Text "Subject to Consulation" to (505) 456-0874 Schedule a FREE subject to consultation and get all your questions answered and tailored advice if a subject to offer even makes sense in your situation.

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