Mortgage for bearance due to the COVID crisis is coming to an end, and many people find themselves having to resume payments on their mortgage but are still without a steady job. This situation can put a huge strain on individuals and families alike.

Nobody wants to lose their home due to foreclosure or a tax sale.

Contrary to general believe, selling your home - while being one of the options - is not the only way out:

It is called "A subject to the existing mortgage sale" (short "Subject To") and is essentially the buyer of the property "assuming" the mortgage of the seller.

The deed to the property and the mortgage are two separate things, and need to be handled as such. The lender is happy as long as payments are being made to the mortgage. This means that the deed (or the ownership of the property) can be transferred, but the mortgage can stay in its original terms as long as the payments are made.

A "subject to" deal is in many ways the ideal outcome all parties, the buyer, the seller AND the lender. Let me explain: The seller does not want to be foreclosed on by the lender and lose their home as a result. Ideally, they would actually like to stay in their home, so they agree to a "subject to"-sale. The buyer will become the holder of the deed and contractually obligated to continue the seller's mortgage payments on their behalf. Depending on how the contract is structured, this can give the seller the option to stay in the home - a win, win, win.

Feel free to contact us to talk about all the options we can offer, and to find a solution that makes sense in your case.

All the best,

-Daniel