Traditional home-selling methods can be slow, uncertain, and stressful. At Creative Real Estate, we provide a faster, more flexible alternative through creative financing solutions, including Subject-To transactions. This approach allows sellers to transfer ownership without waiting for bank approvals, ensuring a smooth, hassle-free closing.
What is a Creative Transaction?
A Creative Transaction is a real estate purchase where the buyer takes ownership, but the existing loan remains in the seller’s name. This method, known as Subject-To, allows us to take over payments and manage the property without requiring the seller to pay off the mortgage upfront.
✅ Higher Cash at Closing – Sellers often walk away with more money than in a traditional sale.
✅ Immediate Relief from Payments – No more worrying about mortgage, taxes, or maintenance.
✅ No Repairs Needed – We buy homes as-is, saving you time and money.
✅ Credit Protection – On-time mortgage payments improve your credit score instead of damaging it.
We prioritize security and transparency to protect sellers throughout the transaction:
✔ Servicing Company – A third-party service provider handles mortgage payments, ensuring they are made on time, with monthly payment confirmations sent directly to the seller. We work with trusted companies:
🔹 Westloan
🔹 Young Inc
✔ Deed of Trust – The seller retains a deed of trust as additional security, ensuring their interests are protected.
✔ Legal Oversight – Every transaction is processed through a licensed real estate attorney and title company for full compliance.
✔ Insurance Coverage – The property remains insured, protecting against unexpected damages.
✔ Promissory Note & Escrow Reserves – Additional safeguards guarantee that payments are handled responsibly.
Is This Legal?
✅ Yes! HUD-1 Settlement Statements recognize Subject-To transactions as a legal and established method of transferring property ownership.
[📄 Click Here To View Document] – The HUD-1 form is a standard document used by title and escrow companies to build settlement statements.
🔹 Line 203: Used when a borrower assumes or takes title subject to an existing loan.
🔹 The Code of Federal Regulation (CFR) confirms this is a legally recognized process.
In the unlikely event of non-payment, our agreement ensures:
📄 Deed in Lieu – The property automatically reverts back to the seller without any impact on credit.
💰 One Payment Held in Escrow – To avoid credit drops, a buffer payment is always secured upfront.
What About My Debt-to-Income Ratio (DTI) When Buying a New Home?
🏡 Lenders can exclude the mortgage payment from your obligations if on-time payments are made for three months.
How Long Will the Mortgage Stay in My Name?
⏳ Typically 5-7 years, but sometimes for the remainder of the loan term, depending on our agreement. We refinance or pay off the loan when market conditions are favorable.
What if the Due-On-Sale Clause is Triggered?
Banks rarely call a loan due if payments are made on time. In the rare event it happens, we either refinance, pay off the loan, or return the property to the seller.
Creative Real Estate simplifies the selling process, allowing homeowners to move forward quickly and confidently—without the delays, costs, and uncertainties of a traditional sale.
📞 Have more questions? Contact us today to discuss your best options.