What subject-to means
The buyer takes title but the existing mortgage stays in the seller’s name. The buyer agrees to make the payments.
Why it’s used
It can help sellers who need to exit a property without paying off the loan immediately — common in distressed or creative-finance situations.
The risks
The loan remains in the seller’s name, so missed payments affect the seller’s credit. Due-on-sale clauses can be triggered. This is a sophisticated structure requiring legal review.
Get advice
If subject-to is on the table, have an attorney review the documents and your exposure before signing.