A subject-to closing occurs when a property is sold, title transfers from seller to buyer, but the mortgages aren’t paid off; that is, the property is sold “subject-to” the existing financing, and that existing financing remains in place after the closing. The seller remains legally responsible for payments, even though the buyer may agree to make any them on the seller’s behalf – but no longer owns the property. The buyer owns the property instead.
When everything is disclosed and everyone signs an acknowledgement and hold harmless agreement to that effect, we have and will handle subject-to closings. In fact, over the years, we’ve handled thousands of subject-to closings.
We will not handle a subject-to closing if the underlying financing is a VA or FHA loan, however. Sorry! If we did, we might end up prohibited from closing those loans in the future. That’s not something we’re prepared to do.