123 Example Street (sample)
Single-familySubject-toVerified sellerSampleSampletown, OH 43000
Description
Sample subject-to house in the fictional town of Sampletown. The existing loan stays in the seller's name in this illustration. Read the due-on-sale disclosure before contacting the seller. No real property is offered.
Fictional house. The buyer would take title subject to the existing loan.
3 bed · 2 bath · 1,460 sqft · built 1998
Quick payment estimate
Amount financed$275,000
Est. monthly: $1,225.41 · Balloon: None
Estimate only, using the standard amortizing-loan formula. Not a quote and not financial advice.
Open full calculatorsDeal-type risk: Subject-to (due-on-sale risk)
In a subject-to deal the buyer takes title while the seller's existing loan stays in the seller's name. That can trigger the lender's due-on-sale clause. The buyer usually pays that loan, and the lender's permission is often not obtained.
- Due-on-sale risk: most mortgages let the lender demand the full balance when title transfers (the Garn-St Germain Act, 12 U.S.C. 1701j-3, allows this). The lender can call the loan even if payments are current.
- The seller remains on the loan. If the buyer stops paying, the seller's credit and the property are at risk.
- The buyer depends on the seller's loan staying in place and on insurance and escrow being handled correctly.
- This structure is not the same as a lender-approved assumption. Talk to a real estate attorney before making or accepting an offer. This site will not negotiate the terms.
This is not legal, tax, or financial advice. It describes common risks. It is not a review of your papers. Have your own licensed attorney read the documents before anyone signs or sends money.