"Subject To" Purchase or Lease-Options:

"Subject to" and/or lease-options are great ways to sell your house FAST!

"Subject to" Purchase: Simply put, this is where I buy your house and take over your payments completely, but I don't assume your loan. In other words, the title (deed) transfers from you to me, BUT the loan remains in your name and attached to the house. You may be saying to yourself, "Why would I even consider doing something like that?" Simply put, immediate DEBT RELIEF is why you would sell your house this way. If you can't afford to make your payments, or you don't have any equity in your house, or you owe more than what the house will appraise for; then, what other choice do you have? List your house with a real estate agent? Short Sale? Foreclosure? Bankruptcy? Try selling your house to a retail buyer in a slow, real estate market? All of these options are risky at best, and none of them solve the underlying problem you're having right now; how can you continue to make your mortgage payments? A "Subject to" sale allows you to walk away from your house and leave the debt in my hands. Yes, there are risks involved with this type of transaction (your lender may call the loan due since title has transfered); but would you rather wait around until someone else makes you a full price offer? It comes down to a simple choice: Do you want to turn your house payments over to someone else, who can make your monthly payments for you; or, do you want to continue making the payments yourself?

Lease-option: A fast and easy way to get DEBT RELIEF. This is where I lease your house from you, with the option to purchase your house for a preset price, within a predetermined time period. Also, I have the right to sub-lease your house to someone else who will actually be living in your house. I will make a monthly payment to you, which you MUST use to pay your monthly payment to your lender. At any time within the lease period (2 year minimum), I have the right to buy the house from you, for the price we agreed to when we signed the lease-option agreement. If I don't buy the house by the end of the lease term, then you will get the house back (with 2 year's worth of equity courtesy of me) and you can do whatever you like with it. I will guarantee my payment to you AND the maintenance of the property while I'm leasing it from you. If I fail to live up to my obligations to you, then you have the right to cancel the agreement and evict me and the tenant from the house. In order for me to consider a lease-option, you must have some equity in your house, and the most that I will guarantee to pay you is whatever the current market rent is in your area. Anything over that amount will be your responsibility to pay. But, would you rather pay all of your monthly payment, or a small piece of it?




This information is intended to summarize the process of selling your house "subject to" the existing financing, or as a lease-option. Is all of this stuff legal? YES! If you don't believe me, then verify this information with the Arizona Real Estate Investors Association at  www.azreia.org or make an appointment with an experienced Arizona real estate law firm, such as Koglmeier, Smith, P.L.C. at 480.962.5353 or 480.833.4488