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  • Writer's picturerisby drayton

How Asset Allies Debt Program is better for banks instead of Short Sale

Updated: Dec 21, 2023

When a homeowner faces foreclosure, the lender can foreclose on the property and take a loss through a short sale. However, in many cases, a subject-to-mortgage agreement can be a better option for the lender than going through a short sale.

Here are a few reasons why a subject-to-mortgage agreement can be beneficial for the lender:

  1. Avoiding the cost and time of foreclosure proceedings. Foreclosing a property can be a lengthy and costly process for the lender.

  2. Keeping the loan in good standing: When a buyer takes over the existing mortgage payments through a subject-to-mortgage agreement, the loan stays in good standing. The lender receives regular payments, which helps mitigate their losses.

  3. Protecting their interests: In a short sale, the lender may only receive a portion of the outstanding mortgage balance. With a subject-to-mortgage agreement, the buyer is taking over the payments on the existing mortgage. The lender is more likely to receive the total amount of the outstanding balance.

  4. Avoiding the risks of owning a foreclosed property: If the lender forecloses and takes ownership, they become responsible for maintaining the property and paying property taxes.


A homeowner faces foreclosure because they have fallen behind on their mortgage payments. The lender has initiated foreclosure proceedings, and the homeowner has submitted documents for a short sale.

In this scenario, the lender may be forced to accept a lower sale price for the property to sell it quickly and recoup as much of their investment as possible. However, they will also have to pay for real estate agent fees, closing costs, and other expenses associated with selling the property. Or, the lender may wait it out in court if it makes more financial sense to take the property through foreclosure.

On the other hand, if the homeowner engages in an instant debt relief agreement with a "subject to" specialist, the lender can potentially avoid the costs and time associated with a short sale. The investor or specialist will take over the payments on the mortgage, and the property will transfer to the new owner.

This allows the lender to refrain from taking possession of the property and the costs and time associated with maintaining and selling it. Instead, they can continue receiving regular mortgage payments and avoid taking a loss on the property.

Overall, our instant debt relief program sale can be a more favorable option for lenders during a foreclosure, as it will save them time and money while allowing them to recoup their entire investment.

In a "subject to mortgage" agreement, the property buyer takes over the existing mortgage payments, but the original seller remains legally responsible for the mortgage. Therefore, the bank or lender may not need to approve the Sale or transfer of the mortgage.

The bank or lender's primary concern is receiving regular mortgage payments. As long as the prices are being made on time, they may not have a problem with a "subject to mortgage" agreement.

In conclusion, a subject-to-mortgage agreement can be a beneficial option for the lender during a foreclosure. As a real estate advisor, it's essential to explain the benefits of a subject-to-mortgage agreement to homeowners facing foreclosure and to help them explore all available options to find the best solution for their circumstances.

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