Real estate agents can help underwater homeowners sell using a subject-to strategy: the investor takes the deed and assumes the mortgage while the seller stays on the loan, avoiding foreclosure and lost commissions. The investor covers closing costs and the agent's commission, but agents must vet buyers carefully for experience and reserves.
Chapters
Real estate agents, what do you do when your client needs to sell but they don't have any equity in their home? Do you list it hoping for a full market value offer? Do you explain to them that they're probably going to have to come out of pocket in order to sell? Or do you list it hoping for the best, knowing it's probably going to turn to an expired listing, the seller is going to be stuck with their mortgage, and you're not going to earn a commission? Well, what if I told you there was another option? Well, how it works is you partner with an investor like us. The existing mortgage stays in the seller's name, but the deed does transfer over to the buyer. The buyer pays all closing costs, including your commission. Now, this might sound like a risky solution, but let me tell you why it works. There are a lot of cases where the seller has to sell. Either they're moving because of a job offer that they took in another location, Maybe they're going through divorce, or maybe they just are having a hard time making the payment. This is where we come in with this solution. It's called subject to. We find ways to protect the seller so that they're covered and their risk is fully mitigated. Now, that doesn't mean you should just jump into this arrangement with any buyer. You definitely want to make sure that you've vetted the buyer, they're someone with experience, and they have reserves. If you want to learn more about how we protect the seller or how the process works, shoot me a DM.
