What is a Sub - To?

[Christopher Albritton]

I have googled this question and looked at several posts about a Sub - To but I'm still a tad fuzzy on it. As I currently understand it, a buyer finds a motivated seller, the buyer takes on the deed, but NOT the mortgage and merely agrees to continue payments. Is this the jist of it? And if this is the base of what a Sub - To is then what are the common pros and cons for the seller and buyer, as well as any tips and tricks you guys have come across?

[Rose M.]

If you type "subject to" in the search bar of the forum, you will get tons of posts to read through. I've been reading them for days. ;)

My understanding: You take a property "subject to" the existing financing. The deed goes in your name, the mortgage stays in the sellers name. The biggest possible con, that I understand, is the possibility of it being called for the "due on sale" clause.

Also, podcast 70 breaks it down.