The Hidden Risks of "Subject-To" Offers—What Every Home Seller Needs to Know

Selling your home is an exciting milestone, but not all offers are created equal. One type of offer you might encounter is a "subject-to" offer—where the buyer agrees to take over your mortgage payments while the loan stays in your name. It may sound like a win-win, but hidden risks could put your financial future in jeopardy.

Understanding "Subject-To" Real Estate Offers

In a subject-to transaction, the buyer takes possession of your home while continuing to make payments on your existing mortgage. However, your name stays on the loan, making you financially responsible if anything goes wrong.

The Risks of "Subject-To" Offers for Sellers

🔴 Credit Risk – If the buyer stops making payments, your credit score suffers—not theirs.

⚠️ Loan Liability – Your mortgage remains in your name, even though you no longer own the home.

⚠️ Due-on-Sale Clause – Most mortgages have a due-on-sale clause, meaning your lender could demand full repayment if they discover the property has changed ownership.

🔴 Limited Legal Protection – If issues arise, you have little recourse because the loan is still legally yours.

When Might a "Subject-To" Offer Work?

While risky, subject-to deals can work in specific circumstances, such as:

✅ You need to sell quickly and can't qualify for traditional financing solutions.

✅ You have a low-interest rate loan that makes it appealing for buyers to take over.

✅ You work with an experienced real estate professional to ensure the contract protects your interests.

Protect Yourself Before Accepting a Subject-To Offer

Before agreeing to a subject-to sale, consult a real estate attorney and a trusted real estate agent. They can help you:

✔️ Review the contract for potential risks

✔️ Explore alternative selling options that offer more financial security

✔️ Understand the impact on your credit and financial future

📺 Want a deeper dive into the risks? Watch my latest video: https://youtu.be/uEu8Nf2oGlE

💡 Thinking about selling? Don’t take unnecessary risks! Download my FREE Home Seller’s Guide and learn how to protect your home sale: https://www.brenbrewer.com/home-sellers-guide

#HomeSelling #SellerBeware #RealEstateTips #SubjectToOffers #HomeSellingGuide #RealEstateAdvice