Selling a home is a significant financial decision, and many different factors must be considered. For example, you are a homeowner who needs to sell their property and needs more equity or has other financial challenges. In that case, this may be the best option for you. This blog will explain how an instant debt relief program or "subject-to-mortgage" agreement can benefit you as a home seller and how it works in simple terms.
Firstly, what is a subject-to-mortgage agreement? It's a real estate transaction where the buyer takes over the seller's existing mortgage without paying it off. In other words, the buyer makes the monthly mortgage payments, but the mortgage remains in the seller's name until it's fully paid off. This means the buyer doesn't need to get approved for a new mortgage, saving them time, money, and stress.
Now, let's see how this can benefit you as a seller. First, you need help with a lien, judgment, short sale, probate, or other financial challenges. In a traditional real estate sale, you must pay off these debts or wait for them to be resolved before selling your home. This can take a lot of time, money, and effort and can be stressful for you and your family.
However, with a subject-to-mortgage agreement, you don't need to pay off these debts or resolve these issues before selling your home. Instead, the buyer can take over your existing mortgage and any other obligations, meaning you can sell your home quickly and easily without any extra costs or headaches. You can also avoid foreclosure, which can negatively impact your credit score and financial future.
But how does this benefit the buyer, the agent, the broker, the lender, and the subject-to-mortgage specialist?
Let's take a look at an example. John is a homeowner who needs to sell his house quickly. However, he has a mortgage of $300,000, and he owes $20,000 in property taxes and $10,000 in credit card debt. So he contacts Asset Allies, a specialist who agrees to take over his mortgage and other obligations.
The buyer makes the monthly mortgage payments, pays off the property taxes and credit card debt, and takes ownership of the property. John is relieved that he can sell his house quickly and avoid foreclosure, and can now move on with his life. The agent and the broker earn a commission on the sale, and the lender is happy that the mortgage payments are being made on time.
Overall, a subject-to-mortgage agreement can be a win-win for everyone involved. As a seller, you can sell your home quickly and easily without paying off any debts or resolving any issues. In addition, the buyer can avoid the hassle and stress of getting approved for a new mortgage. Finally, the agent, broker, lender, and subject-to-mortgage specialist can earn a commission or fee for their services.
Our instant debt relief option may be worth exploring if you're considering selling your home.
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