Selling a house Subject To in Okaloosa County is what we call a win – win – win. You get out from under the financial burden almost immediately (win). We solve your real estate problem and put a qualified tenant or tenant-buyer in the house and we keep paying your monthly mortgage (win) until the property is sold or refinanced. And your mortgage loan stays current (win). Basically, we are purchasing the property for what’s owed on the loan. And even though this is a non-traditional strategy and method of acquiring property, it’s completely legal and ethical. And the banks are just happy that your mortgage is getting paid. Please let us know if you or your lawyer have any questions about this way of acquiring and transferring property, we can answer any questions that you or they may have about how we buy houses in Florida subject to the existing financing.
(DISCLAIMER: We are not real estate agents - we are people who buy houses in Okaloosa County, FL This is not legal or financial advice, just practical strategies and suggestions that we know works and can provide sellers with solutions to real estate problems. If needed, please seek advice from your attorney or financial advisor or other professional that you trust before making a financial decision. We ask you to keep in mind however, if anyone tries to discourage you from selling your house "Subject To", ask that person if they are ready to step in and start paying your mortgage on your behalf.)
Sell Your Okaloosa County Florida House Fast, "Subject To" Your Existing Mortgage.
CAN SELLING MY HOUSE IN CRESTVIEW OR FORT WALTON BEACH
"SUBJECT TO" THE EXISTING MORTGAGE
SOLVE MY REAL ESTATE PROBLEM?
IF YOU NEED TO SELL URGENTLY IN NICEVILLE, DESTIN, VALPARAISO OR SHALIMAR FLORIDA,
AND A CASH OFFER WON'T SOLVE YOUR REAL ESTATE SITUATION,
HERE IS A BREAKDOWN OF THE OFFER THAT I WILL MAKE FOR YOUR HOUSE,
WHICH IS NOT AN ALL-CASH DISCOUNTED OFFER,
BUT RATHER, A FULL-PRICE "SUBJECT-TO" OFFER.
We usually make one of two kinds of real estate purchase offers when solving a home owner's urgent real estate problem on the Emerald Coast. Most of our "we buy houses" offers are deeply discounted all-cash purchase offers, where we offer to buy a house for cash that is a fixer-upper that needs extensive repairs. We have to buy it cheap enough to pay for repairs and make it worthwhile for us to turn a profit. This kind of offer is never the type of offer anyone with a house in beautiful condition would ever make.
The other kind of offer we make when acquiring a property, is made for property sellers who want to sell their real estate or who urgently need to sell a property, but where they can't accept a discounted cash purchase offer. In a nutshell, we offer to step in and buy the house "Subject To" the seller's existing mortgage, where we start making their monthly payments until the house is sold. This "Subject To" process could take several years, but it can solve your immediate problem.
Our Subject-To property purchase offer is specifically tailored for people who couldn’t sell their house on their own (FSBO), or haven’t been able to hire a Real Estate Agent because of their high commissions and selling fees, or who simply do not want to pay a real estate agent's commission and who do not want to sell their house for less than their mortgage balance. People in this category may have recently purchased the house and need to sell, and the house has only very little equity or no equity, so a seller would have to bring money to closing to cover closing costs and fees -- making the "traditional way" of selling impossible.
Unfortunately, this type of scenario happens a lot in Okaloosa County. If you are in this type of situation, it doesn’t mean that you are somebody that is broke or even financially irresponsible. It just means that you purchased a house and the value has not gone up enough to give you enough equity to cover the cost of a real estate agent and closing costs involved with selling the house. Selling your house the "normal way" costs about 8% of the sales price. Maybe you are a doctor with three vacation houses in Florida, and you are ready to let go of one of them that you never have time to visit or are tired of managing short-term rentals.
HERE’S THE "SUBJECT-TO OFFER" WE'RE MAKING YOU:
Our Subject To purchase offer is real simple and straightforward.
We will buy the house Subject To your financing by taking over the house payments.
We will make your mortgage payments until your house is paid off or we sell it.
But isn't this Subject To selling unethical?
Absolutely not. Frankly, if you have zero equity or very little actual equity in the house, you wouldn’t be getting any cash for your property at closing anyway, however selling the house Subject To, you won’t need to make any more house payments after we step in and purchase the house. It completely ethical and it solves a problem. If you can "walk away" from your property by selling it with a real estate agent you should absolutely do that. That that is not a viable option for you and your circumstances, this is an ethical and viable real estate solution.
Is this a risky way to sell a house?
The risk to you the seller is if we do not do what we say we will do. Reputation is everything. I doubt that we will be in business long if that was the case. We are morally and ethically obligated to do the right thing, and make sure that your monthly house payment is made on time, every time.
Is this the kind of real estate solution that you were looking for?
Will this kind of a real estate sale solve your problem extremely quickly?
Most definitely, YES.
Like the Rolling Stones song says...
“You can’t always get what you want,
but you find sometimes,
THIS IS WHY WE BUY HOUSES IN NICEVILLE AND DESTIN THIS WAY AND THIS IS WHY SELLING YOUR HOUSE "SUBJECT TO" YOUR LOAN LIKE THIS MAKES A LOT OF SENSE.
Selling Us Your House "Subject-To" Is Easy. First of all, we're able to close the deal when the timing is good for you. If you need us to buy the house right away, and you need help with house payments, we can buy your house as fast as in just five business days. But if that’s too fast, no worries, just let us know when we can close. Selling a house Subject-To is easy. Our paperwork to buy the house is simple and straightforward, and once we sign it, you really don’t have to do anything else. Our property management company takes over and they put a good tenant in the property. Our property manager and I deal with any headaches, so you will never need to deal with tenant issues. Actually, you won’t even need to ever deal with our property manager or with the house after you sign the house over to us. we are responsible for everything, and we handle everything at the house with the help of our property manager. We take care of maintaining the house, repairing the house, and we're responsible for any possible damage in the house.
You are essentially WALKING AWAY from the house and YOU are not obligated to ever make another house payment, because we're obligated to pay your mortgage. We will make full payments on your loan, including the mortgage principle, mortgage interest, property taxes and mortgage insurance. We will make payments in a timely manner just as you agreed to when you obtained the mortgage on the house.
Once we rent the house to a tenant, or tenant buyer, we are going to keep renting out the house and paying down the mortgage until the value of the property has increased enough that we feel it is a good enough return on my investment. Once our tenant moves out, we are betting on the outcome that we can make a profit on the house when we sell it. When we eventually sell the house, the mortgage that is still in your name will be paid off in its entirety. And until that time when the loan is paid off, we assume the responsibility of paying all additional costs and expenses of maintaining the property.
As real estate investors, we will attempt to earn a profit and make money long-term, or short-term by overseeing the management of the property and maintaining the house properly, in a good and workman-like manner, and by waiting until the value of the house increases enough, so that we can sell it with a profit. We are the ones who are taking a substantial risk as the investors. When we buy your house subject to, we're taking complete responsibility ethically for the good standing of your loan and the physical well-being of the house itself.
We are very easy to work with (at least that’s what sellers and friends from our real estate investor groups tell us). Our house buying process is direct and straightforward, and we have complete transparency. It generally takes us approximately five to seven (5 to 7) days to finalize and close a subject to sale. Basically, as the house seller, all that you need to do is to sign or assign your deed over to our real estate investment company. This is a very simple process.
(Please remember, if you require more than 5 days to move out of the house, we totally understand. No worries, just please tell us so we can work out the arrangements with you.)
It’s very important for you to understand, that when we buy your house “Subject-To” your existing mortgage, that the loan will not be in my name. The loan is going to remain in your name. This is the key element that makes buying and selling a house “subject-to” the existing mortgage work as a viable solution for sellers who need to sell fast and walk away from their house with no additional impact on their credit.
We are going to be making all of your house payments going forward, but your name will still be on the mortgage documents. Initially, you may be a little concerned about this, but if you allow us to show you exactly how this works, hopefully you will understand and realize that this is not as scary or risky as it may sound.
THIS IS WHY SELLING A HOUSE TO US "SUBJECT TO" CAN BE A GOOD SOLUTION
CRITERIA FOR PROPERTIES WE WANT TO BUY
House mortgage balance must be below $375,000. (Occasionally I’ll buy properties that are a more expensive and also prices a bit lower than this, depending on the particular location.)
Your total loan amount for all mortgages held against the property should be less than the market value of the house.
We buy houses Subject To with mortgage interest rates less than six percent (6%).
Properties that we purchase Subject To should be in decent condition, either ready to rent immediately or needing just some very minor TLC or minor repairs. If your house has “issues” you need to disclose them to us.
We prefer that your house payments are current. We understand that sometimes life happens. We ask that you be straightforward with us in order for us to help you. If you are a mortgage payment behind, or need help with mortgage payments, we need to know the exact details. On the day that we buy your house and take over mortgage payments for you, we prorate the interest to the exact day that we assume making your payments.
And that is pretty much it in a nutshell. Again, we're easy to work with. We're not nitpickers. We don’t discriminate against anybody for any reason, and we believe in treating everybody with kindness, dignity and respect. We follow the golden rule of business.
We buy houses as is, with the requirement that the house be in somewhat fairly nice and decent and rentable condition if we are buying it Subject To. If your house is appalling and complete disrepair, then chances are that we will probably pass on it or simply make you an offer that is insultingly low, so we have enough room in the purchase to make a few dollars after we pay for repairs.
When you sell your house in Florida this way (selling it to us subject-to the mortgage) you no longer have to pay maintenance and repairs to your home, you don’t pay any closing costs. You don’t pay any realtor fees since we are investors, and there is no need to haggle with us on the price. And best of all, the stress and worry about the monthly house payment goes away, since we are the ones responsible for paying your mortgage.... If you were listing your house for sale with a broker, you would still be paying the mortgage, even if the house was empty for a few months.
If this way of selling your house makes sense and you’d consider selling it to us this way, please fill out the Contact Form on this website.
PLEASE LET US ANSWER SOME COMMON QUESTIONS THAT WE GET ABOUT SELLING A HOUSE “SUBJECT-TO” THE EXISTING MORTGAGE.
Selling your house to a Subject To real estate investing company is so easy, even a caveman can do it.Selling your house in Florida "Subject To" your existing financing is so easy, that even a caveman could do it. But still, we get a lot of questions, here are the main questions that we get over and over from people who are considering a Subject To selling solution. HERE IS THE #1 QUESTION THAT FLORIDA HOME SELLERS ASK US WHEN THINKING ABOUT OUR SUBJECT TO OFFER:
Q: "If you buy my house subject to, and take over my loan, and the loan stays in my name, can we still qualify for another mortgage to purchase an additional house?”
A: And the very simple answer to this question is as long as your credit is not completely destroyed, then maybe or probably Y-E-S! You absolutely can and should be able to get another mortgage. As long as of course you don’t have very poor credit. Let’s face it, it your credit is horrendous, nobody will lend to you. You need some sort of fair to good credit history with most lenders. Banks and Lending Institutions that are considering underwriting the additional loan will see the mortgage for this property when they review your credit report. Lenders will almost always consider this loan to be a “sale” as opposed to being a “liability” assuming that your credit is fairly decent. This is great news for you because the mortgage that we take over most likely won’t be counted against your debt, and probably should not influence the total amount of money that you need to borrow for your next home.
If you don’t believe me, call up any lender and ask them if you rent out your house to a tenant and that rent payment covers your mortgage, if you will be able to purchase a second home as your residence?
Q: Another question that we often get is something like this: “But what about the equity that is already in my house? I paid down my mortgage for 15 years. I would like to get something for that if I decide to sell to you.”
A: Our no-nonsense answer is this. If you’ve got over ten percent equity (10%) in the house, then simply deeding the property to us and having us take over the mortgage IS NOT a good solution for your house problem. Folks, we are not property bandits, we are real estate investors who are doing this for our own benefit and profit, but we also provide this solution to help you as well, and we are here to make you a very fair deal. There are solutions available if you have more than 10% equity and you want to sell your house Subject To so you can avoid paying a real estate agent's commissions for example. Call us to discuss these strategies at 850-400-5600. If your house has less than 10% equity, more than likely, you’re not getting very much cash – IF ANY – at the closing table anyway after you sell and pay your real estate agent and for all the closing fees. Less than 10% equity is also called “realtor equity” because it’s the money gobbled up at closing by all the crazy realtor fees and closing fees.
In fact, the majority of you folks who fall under the “less than 10% home equity” category actually don’t have enough equity as needed for what it actually would take to sell your house. So a lot of you would actually need to come to the closing table with cash in hand (cashier’s check) just to sell your house with an agent. The only way to avoid giving up a large chunk of your 10% “realtor equity” is to sell your house on your own as a For Sale By Owner or FSBO. But then you will likely get low-ball offers that are for less than you own on your mortgage.
And of course, this is why the big problem with selling your house on your own as a FBSO is that according to Realtor’s statistics, about 85% of FSBO home sellers fail and are unsuccessful in sell their house on their own.
HERE IS THE SECOND MOST COMMON QUESTION THAT SELLERS ASK US WHEN THINKING ABOUT OUR SUBJECT TO OFFER TO PURCHASE THEIR FLORIDA HOUSE... SOUNDS SOMETHING LIKE THIS:
Q: "Our mortgage has a "Due on Sale" provision. If we sign the mortgage to you to sell the house “Subject-To” the existing loan, won’t the Due on Sale Clause trigger the mortgage company to call the entire loan due immediately, or will the lender foreclose on us?”
A: The vast majority, over 99% of all mortgage loans in the United States contain a "Due on Sale" clause. This Due on Sale provision is a term which is considered standard language every lender’s loan agreement. The due on sale clause basically says, that if the Home Owner sells the house without paying off the loan, the Lender has the right to foreclose.” To understand this, they have THE RIGHT, BUT NOT THE OBLIGATION to call the loan or foreclose on the house.
Investors in my real estate investing group have bought and sold more than 1,000 houses "subject to" the existing mortgage over the past two decades, and to the best of our knowledge, not one single lender EVER foreclosed on, or called the mortgage due. They NEVER give us a problem with this. Why? The reason is simple, the mortgage payments always get paid on time.
Home lenders and mortgage companies exist to collect loan payments over a long period of time. Mortgage lenders aren’t in the business of foreclosing on houses and taking back properties and the especially aren’t in the business of taking back houses that have little to no equity in them. Just like you and I have a credit score, mortgage lending institutions also have to type of credit rating system by which they can borrow and lend money. Their credit score goes down and their ability to lend money is damaged when they have a foreclosure on their books. The less foreclosures, the better. They can’t write mortgages and lend money if their own credit score is low due to too many foreclosures.
Believe us when we tell you, your mortgage lender DOES NOT want your property back!
Real estate trivia... Did you know that "Existing loans taken SUBJECT-TO" can be found on Line Items 203 & 503 of every HUD-1 Statement?
HERE IS THE THIRD MOST COMMON QUESTION THAT SELLERS ASK WHEN THINKING ABOUT OUR SUBJECT TO OFFER TO BUY THEIR FLORIDA HOUSE:
Q: "Is selling a house Subject To the mortgage illegal or a scam?! Are you allowed to buy houses this way legally or ethically?"
A: Buying real estate Subject To an an existing mortgage is legal. Moreover it is not a scam at all. It is an ethical way to sell and purchase real estate. And since it solves a major problem for many home sellers who literally have just about exhausted all options short of declaring bankruptcy, selling their house Subject To existing loans to an investor like us is a huge relief and a blessing. That is why our strong opinion is that subject to real estate investing is not only legal it is also a completely moral and ethical real estate transactional strategy. But don't believe us, we are just Florida real estate investors from the internet.
Take a look at this blank copy of a HUD-1 Settlement Statement downloaded straight from the US Dept. of Housing and Urban Development's website.
Look at line items 203 and 503.
What do they say?
Line items 203 and 503 on the HUD-1's say
"EXISTING LOAN(S) TAKEN SUBJECT TO".
Hopefully the fact that the United States government has two line items on the HUD-1 Statement that all sellers get at closing of a real estate transaction answers your questions or any doubts that you had about the legitimacy of selling a house Subject To the existing mortgage.
So that’s basically it.
Steve buys houses Subject-To in Okaloosa County, Florida.
By the way, my name is Steve Kazella, I've been a full time landlord consultant and coach in the cell phone tower industry since 2008, and I'm a person that buys houses in Okaloosa County and the Emerald Coast, Subject To the homeowner's mortgage. My offer to you is simple. We take over house payments for you in Fort Walton Beach, Crestview, Niceville, Destin, Shalimar, Valparaiso or Mary Esther, and we rent out the house to a tenant or tenant buyer and take care of the management, repairs and upkeep of the house until there is hopefully enough equity built up by paying down the mortgage loan, and increase in the value of the property, so that we can sell it with a profit and pay off the original mortgage or get it refinanced.
I can't guarantee for you how long we will be "into the property" until we sell it. It could be for a timeframe as short as two or three years time, but it realistically could be five years, or more, and it possibly could be for the entire term of your mortgage. I believe in full transparency.
Selling your house “Subject To” is not for everyone, but it is a very effective way of helping you to sell the house fast and can resolve a stressful real estate situation, and it’s also a good real estate buying opportunity for us.
Win - Win - Win!
If you are ready to sell your Okaloosa County Florida house to us Subject To, please contact me using the Contact Form below on this page. Thank you for taking the time to read and digest all of this information. And please let me know if you have any questions.
Selling your house this way can be a viable option for you if you are unable to sell it any other way in my opinion.
Let’s talk soon.
Call me: 850-400-5600