Another technique that a homeowner can use to sell their property as-is for a higher purchase price is “Subject to the Existing Financing” or “Subject to” for short. This technique can be utilized by a seller who wants to walk away from a property. This means the monthly mortgage payments (Principal, interest, taxes, insurance, and other costs of ownership) that are supposed to be shouldered (by the homeowner who is now selling their property) to the initial lender, are no longer the responsibilities of the seller and they can walk away from these responsibilities because the buyer will assume them.
How to Use “Subject to the Existing Financing” to Sell Your House for More Money
“Subject to the Existing Financing” is a principal way of selling a property as-is without paying closing costs or commissions, if the seller has little or no equity in the property and needs to sell fast and for a higher purchase price!
As a seller, you can use “Subject to the Existing Financing” as a negotiation tool by asking to transfer property ownership to the buyer if the buyer can take over the payments of the existing loan (mortgage) on your property. In exchange for this, the buyer does NOT need to bring cash to the closing table to pay off this existing loan at once.
In addition, the buyer buys your property fast and offers you cash to walk away with so that you can get to your next point very quickly. All you have to do is disclose the existing loan terms as well as outstanding mortgage payments and back taxes to the buyer. If you are considering using “Subject to the Existing Financing” to sell your property, we can help here at Kevalla Investments, LLC.
In case, you haven’t grasped how to use “Subject to the Existing Financing” to negotiate with a buyer, here is an analysis. Let’s say, as a homeowner, you have an existing loan of $250, 000 that you have obtained from Bank of America to purchase your home and you want to sell the property right away. Instead of selling the property for $250, 000 cash, you can sell for $250, 000 PLUS (Cash to you and non-cash for the existing loan amount) to a buyer, using “Subject to the Existing Financing,” which may include the following:
- Buyer takes over the existing loan of $250, 000 with the Bank of America
- Buyer makes monthly payments (Principal, interest, taxes, insurance, and other costs of ownership) to Bank of America
- Buyer pays a specific cash amount to seller at closing
- Buyer pays all closing costs
- Buyer closes escrow on the day selected by the seller
Are you a homeowner with an existing mortgage or loan their property and you need to sell as-is and walk free from this property? Kevalla Investments can help because this is what we do!
For a real estate investment company that will buy your property for a higher price, as-is with “Subject to the Existing Financing” and without closing costs or commissions, contact us now by calling/texting (240) 449-1770 or filling in this simple form to see if we can help.
This blog is only to enlighten the readers and is not meant to be used for tax, real estate, financial, insurance, legal, or investment advice. Kevalla Investments, LLC encourages you to contact a professional regarding your circumstances. Please confer with your advisor when making financial or legal decisions.
