Who is the principal under with a Subject To deal?

[Alan Robert Litz]

When doing a Subject To deal who is the loan still under or how does it actually work? I have heard two scenarios, and I don't know which one is right. The first is that that the seller keeps the loan under his name. You then pay him and then he pays that debt. The second way I have heard it is you assume the loan from the seller and now you pay that debt. Any help in clarifying this would be greatly appreciated!

[Account Closed]

Originally posted by @Alan Robert Litz:

When doing a Subject To deal who is the loan still under or how does it actually work? I have heard two scenarios, and I don't know which one is right. The first is that that the seller keeps the loan under his name. You then pay him and then he pays that debt. The second way I have heard it is you assume the loan from the seller and now you pay that debt. Any help in clarifying this would be greatly appreciated!

 Subject to - the lender is not involved, the seller keeps the loan in his name.

Assumption - the buyer has to qualify with the lender and the loan goes into the buyer's name, if he qualifies