Selling Subject-To means the buyer takes over the existing mortgage payments while the loan remains in the seller’s name. The deed transfers to the buyer (or their trust), who becomes responsible for all future payments, taxes, and insurance, providing the seller immediate relief from the debt.
Yes. Every transaction is closed through a licensed third-party title company or real estate attorney. We use professional disclosures and legal structures like Land Trusts to ensure all parties are protected and the underlying mortgage stays in good standing.
Your equity can be paid out in several ways: a lump sum at closing, monthly installments (where you act as the bank), or a combination of both. We structure the payoff based on your specific financial goals and timeline.
While the Due on Sale clause is a standard part of most modern mortgages, banks rarely trigger it as long as the monthly payments are being made on time. At InnoTrade Services, we mitigate this risk entirely by using specialized land trusts, ensuring the property is insured correctly, and keeping the mortgage performing. In the rare event a bank calls the loan, we have contingency plans in place to pay off the note or refinance the property so you are never left at risk.
In a “Subject-To” transaction, the property deed transfers to us, but the original mortgage remains in your name. We take over the payments entirely. Because we make your mortgage payments on time, every time, your credit score typically improves over time. If you need to buy another home in the future, we provide you with the servicing records showing we are making the payments, which offsets your Debt-to-Income (DTI) ratio for your new lender.
We structure equity payouts based on your specific needs. Depending on the property, we can offer an upfront cash payment at closing, monthly installment payments (seller finance), or a future balloon payment. When you fill out our underwriting form, we calculate the best structure to get you the most money out of your equity while keeping the deal viable.
Yes, purchasing property “Subject-To” existing financing is 100% legal and is actually mentioned on line 203 of the standard HUD-1 Settlement Statement. To protect you, all transactions are handled by licensed, investor-friendly title companies and real estate attorneys. We never ask you to sign the deed over at a kitchen table; everything goes through strict legal and title compliance.