Frequently Asked Questions (FAQ)

Seller financing and subject-to sales offer exciting possibilities for creative sellers. This FAQ dives into the most common questions to empower you to navigate these options with confidence and unlock the full potential of your property.

Is Seller Finance & Subject To legal?

You bet! Seller financing and subject-to sales are perfectly legal ways to sell your property. In fact, they can give you more control over the transaction and potentially open up your property to a wider pool of buyers.

What happens if your company STOPS paying?

We Won't! Our contracts include a "Deed in Lieu of Foreclosure" clause. This means if payments stop for a set period (typically 30 days), the property automatically comes back to you through a quick and painless process, avoiding a lengthy foreclosure.

Here's the bonus: You'll get the property back with all the benefits of the buyer's investment! This includes any money they've paid down on the mortgage, improvements they've made, and any potential increase in the property's value. You can then keep the property or sell it again for potentially more due to the reduced mortgage balance and upgrades. It's a win-win!

What if the existing loan has a due-on-sale clause?

Relax, we've got your back on due-on-sale clauses. These clauses can sound scary, but there are ways to navigate them. 95% of the time lenders don't even enforce them! Why? The bank is in the business of lending money. They want to save the money and time that is required to foreclose on a property.

IF it does happen, don't worry we have experience in this. We have a strategy called a "Contract for Deed." This simply transfers ownership back to you temporarily, while the buyer makes payments under a lease agreement. This often satisfies the bank's requirements and allows us to move forward with the subject-to sale. We'll handle the details to ensure a smooth transaction for you.

Can I combine Seller Financing with Subject-To?

Yes! This "hybrid" approach offers flexibility. We can negotiate terms for the outstanding balance (the mortgage) and build in payment for the equity you have in the property as ongoing payments. WIN-WIN

Who takes care of the repairs/maintenance, property taxes, insurances and utilities after the sale?

WE DO!! After the deed is transferred to us, That leaky faucet? Our problem to solve! Need a new coat of paint? Its on us to handle it. As the seller, you simply relax and enjoy the smooth flow of payments, free from any maintenance worries.

Are their tax benefits to Seller Finance and Subject To?

They sure are!! I don't know about you, but we try not to give the government any more than we have to in taxes and this is a way to do that. Seller financing/Subject To can offer some sweet tax benefits, like spreading out that capital gains party over a longer period. As always, we recommend consulting a tax pro. They'll help you understand the specifics and ensure you're keeping Uncle Sam happy.

Still have questions? We have answers...Send us a message.