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In its simplest form, the “subject to” in a subject to mortgage refers to the loan that’s already in place. When you purchase a property subject to, you are essentially buying the home subject to the existing mortgage — that’s really all there is to it. The original underwriting is kept as is, including the name in which the loan was purchased.

Compared to a traditional house sale, a new concept being pushed is a subject to loan assumption. It sounds good on paper, but ive never heard of them before

>In its simplest form, the “subject to” in a subject to mortgage refers to the loan that’s already in place. When you purchase a property subject to, you are essentially buying the home subject to the existing mortgage — that’s really all there is to it. The original underwriting is kept as is, including the name in which the loan was purchased. Compared to a traditional house sale, a new concept being pushed is a subject to loan assumption. It sounds good on paper, but ive never heard of them before

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[–] • 1 pt

You've never heard of them before because they weren't worth the risk. If the lender sees that the deed has been swapped out under them, they may call the loan due. Mortgages are almost always explicitly 'non assumable'

Now that interest rates are relatively high, people are willing to take the risk

[–] [deleted] • 0 pt

I noticed the people selling these things are incredibly obtuse about what the process entails and how it can screw you over later. If they take the asset, and you get stuck paying off the loan, you're out of the house AND the loan amount which would be devastating for most people