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The Benefits and Risks of Buying a Property "Subject To"

Updated: Dec 11, 2022



Buying a property with subject to can be a good option for buyers who want to avoid the time and expense of obtaining a mortgage. In a subject to transaction, the buyer takes over the payments on the existing mortgage, but the seller remains responsible for the loan.

Benefits of Buying with Subject To

  • Avoid the time and expense of obtaining a new mortgage

  • Potential to negotiate a lower purchase price

  • Quicker transaction than a traditional sale

Risks of Buying with Subject To

  • Seller could stop making payments on the existing mortgage

  • Property could have undisclosed liens or other issues

  • Buyer may be responsible for any legal issues or expenses

Overall, buying with subject to can be a good option for buyers who are looking to purchase a property quickly and avoid the traditional mortgage process. However, it's important to carefully research the property and the existing mortgage and understand the potential risks before entering into a subject to agreement. It may also be helpful to consult with a real estate attorney or financial advisor for guidance.

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