Are Subject To illegal?

[Cristian Samayoa]

Does anyone have experience with Subject To real estate deals?? Is it legal? What are the cons? Hagerstown Frederick

[Jon Holdman]

Subject to is not illegal.  You will not be arrested and put in prison for doing a subject to deal.  It is a violation of the loan terms.  The loan terms specify a remedy for that violation - calling the loan.  That's the con.  That the lender finds out the property was sold without paying off their loan and then they foreclose and take the property.  The buyer loses the property and any money they put into it.  The seller's credit is damaged.  Very likely the seller sues the buyer in this case, causing the buyer even more pain.

Violating a contract is a civil matter, not a legal matter.