Subject-to explained simple — and when it actually beats cash

Subject-to means you buy a property "subject to" the existing mortgage. The loan stays in the seller's name. You take title, you make the payments, you collect the rent or flip the deal. ## When sub-to wins - Seller is behind on payments and just wants out - Loan rate is way below today's rates (a 3% mortgage is a goldmine) - You don't want to qualify for new financing - You need to close fast (days, not months) ## When sub-to loses - Seller has co-borrowers who didn't agree - There's a due-on-sale clause the lender is actively enforcing - You can't actually make the payments - You skipped real attorney review ## The non-negotiables 1. Written disclosure to seller, signed 2. Title insurance with sub-to endorsement 3. Authorization to communicate with the lender 4. Insurance written on a land trust or LLC, with seller named as additional insured 5. Servicing through a third-party loan servicer — never seller-direct ## Why creative finance belongs in your toolkit Cash buyers are the bread and butter. But sub-to, seller finance, and lease options let you close deals cash buyers walk away from — at margins cash buyers can't touch. That's why every cash buyer wish list inside TLBC includes a financing-type filter. Cash, seller finance, sub-to, lease option, hard money, private money. Match the deal to the strategy.