A subject-to closing occurs when a property is sold and the title transfers from seller to buyer, but the mortgages aren’t paid off. That is, the property is sold “subject-to” any existing financing, and that existing financing remains in place after the closing.

In a subject-to transaction, the seller remains legally responsible for payments, even though the buyer may agree to make any them on the their behalf. The seller, however, no longer owns the property, which is instead legally owned by the purchaser.

When everything is disclosed and everyone consents, we have and will handle subject-to closings. In fact, over the years, we’ve handled thousands of subject-to closings.

We will not handle a subject-to closing if the underlying financing is a VA or FHA loan, however.