Objections to subto deals
“Once I understood how it actually worked and that I could hold him accountable to pay, I was ready to sell.”
Common Objections to Subto Offers in Real Estate
Subject-to (subto) real estate offers are an incredible tool for buyers and sellers when used on the right deals. But there's a lot to learn in a little time, and plenty of legitimate questions and objections that need to be addressed before the deal can be done safely. Objections are natural in creative finance transactions: they shouldn't be dismissed - they should be discussed.
We're inviting you to an open discussion about the structure and security of subto transactions and how they can be handled ethically, responsibly, and in a way that gives everyone peace of mind.
Objections from Sellers
But I have to pay off the loan to sell the house...
Why can’t you just get your own loan instead of taking over mine?
Why do I have to hide the sale from the bank?
This seems too complicated and stressful for me to deal with.*
What if the bank finds out and accelerates the loan?
Is this even legal?
I don’t want this loan on my credit anymore. How can I trust you to keep making the payments on time? What happens if you stop paying?
What’s in it for me if I let you take over my loan?
How will this affect my ability to get another loan to buy a home?
Objections from Realtors
This doesn’t seem like a good deal for my client—what’s the benefit to them?
I don’t understand this well enough to recommend it in case something goes wrong.
Is this even legal?
What if the lender calls the due on sale clause?
What happens if the buyer stops making payments?
How does this transaction affect my commission?
This isn’t how normal transactions work. This takes more of my time and energy than a traditional deal.*
What makes your offer different than all the other subto offers I've received?
Are title companies even willing to close a subto deal?
(* = Items with an asterisk are actually complaints, not objections)
The Reality: Subto is Common
Hundreds (if not thousands) of subto transactions are closing each month. DOS Guard's title partners and certified TCs have been handling them for years. Your situation is not unique, but that doesn't mean you should skip your due diligence.
Unfortunately, it's easy for creative finance transactions to be done unethically (whether the buyer meant to or not...). So your buyer should be able to answer all your questions, or they should be bringing in experts like those in DOS Guard's partner network to make sure your deal is safe and ethical.
If you have questions or concerns about subto, let us put you in touch with a DOS Guard certified partner.
