Taking over payments: how it works

It means we buy your property and take over your existing mortgage payments, while the loan itself stays in your name. We take on the payments and full responsibility for the loan. The technical name for this is a "subject-to" purchase, and it's a long-established way to transfer real estate. You'll actually see it referenced on the closing (HUD) settlement statement, on lines 203 and 503, which note that the property is being taken "subject to" the existing loan. Some agents and brokers aren't familiar with it and may question whether it's legal. It is recognized, and the IRS covers related rules in Publication 537.

You're protected by two documents that the title company drafts and you sign at closing: a Deed of Trust and a Promissory Note. The Deed of Trust lets you take the property back if we ever fail to hold up our end, without a long, expensive foreclosure. Both are enforced through the closing title company, so the agreement is legally backed, not a handshake.

No. We keep this as painless as possible. We pay for a third-party loan servicing company to manage the agreement. The servicer collects the payments, sends statements, and keeps a record that the mortgage is being paid on time. You get documentation and peace of mind that the loan is being handled professionally.

In the unlikely event we ever stopped making payments, the property transfers back to you through the Deed of Trust. You would keep everything we had paid up to that point and regain possession of the house.

To put together an offer that actually fits your situation, we need a few specifics about the property and the loan. Some of it is personal, but it's what lets us build the right offer:

• Full property address
• Loan amount remaining
• Interest rate
• Monthly payment
• Any major repairs needed

Then just email us the details and we'll take it from there.

We review what you send and may call to get a few more details about your situation and the property. Then we put together a fair, honest offer that works for everyone involved. Once you have it, there's no obligation at all. Whether or not you sell is completely your call. If you decide to move forward, closing is fast and you get to pick a date that fits your schedule.

When you're obligated on a mortgage but another party is actually making the payments, a lender can exclude that full monthly housing payment (PITIA) from your debt-to-income ratio, as long as the party making the payments is also obligated on the debt, there are no late payments in the most recent 12 months, and you aren't using rental income from that property to qualify. To exclude it, the lender needs the most recent 12 months of canceled checks or bank statements showing the payments were made on time by the other party. This is spelled out in Fannie Mae's guidelines on monthly debt obligations.