What is a Subject-To deal?
A Subject-To deal means purchasing property or an asset **subject to the existing financing**. The original loan stays in the seller’s name, but you take over making the payments. No new bank loan is required.
Why would a seller agree to a Subject-To deal?
Sellers choose this option when they need to move quickly, avoid foreclosure, or can’t sell traditionally due to market conditions or loan terms. It allows them to walk away without a new loan payoff and helps keep their credit intact if payments remain current.
What types of assets can be bought Subject-To?
While many people associate Subject-To with houses, the same concept can apply to:
– Residential real estate
– Vehicles and RVs
– Boats and marine equipment
– Mobile homes
– Commercial properties
– Heavy equipment
Do I have to qualify with the bank?
No. In a Subject-To transaction, you don’t apply for a new loan with the bank. The existing financing remains in place, and you agree to make payments according to the current loan terms.
What documents are needed for a Subject-To deal?
Typical paperwork includes:
– Purchase Agreement (with Subject-To terms)
– Seller Disclosure
– Authorization to Release Loan Information
– Insurance Update Forms
– Any state-required disclosures
We offer ready-to-use templates in our **Resources & Tools** section.
Is this legal?
Yes — Subject-To transactions are legal in all 50 states when structured properly and with all required disclosures. We recommend working with a qualified real estate attorney or title company familiar with creative financing.