Subject-To
Buying a property while leaving the seller's existing mortgage in place, taking over the payments rather than getting new financing.
In a subject-to deal, the buyer takes ownership while the seller's existing mortgage stays in place, and the buyer makes the payments. It's a creative-finance structure that avoids new bank financing.
Subject-to offers are nearly impossible to land on a cold call but work well in a written letter of intent, where the terms — who makes the payments, that the existing loan stays — can be stated plainly and forwarded to the seller.
Related terms