YES! We are Georgia's MOST Investor friendly law firm - handling all sorts of creative financing ... and that includes Subject-To Transactions.
Straight from Wikipedia: It is "non-traditional or uncommon means of buying land or property." It may include the Buyer or Investor utilizing Seller financing or even them taking over payments on an existing loan (subject-to).
It's a type of closing that allows Buyers to acquire a property while leaving the existing mortgage in place. It is absolutely not a formal assumption of the existing loan. While not without risks and complications, it can provide a solution for both Buyers and Sellers. There are plenty of resources and information across the Web to learn more about it - but yes, we can handle these transactions!
There typically is language in the loan documents that states if title to the property changes that the loan is to be immediately paid in full. There are a narrow range of exceptions covered in the Garn-St Germain Act and by practice. For instance, MOST lenders will allow a person to transfer title to an LLC they are sole member of or at least own a majority interest. Sell it in an arms-length transaction - you MAY trigger the Due On Sale clause. Can we guaranty what will or will not happen? Unfortunately we cannot.
Nope! Section 341 on Page 37 starts the discussion about Due On Sale clauses. Section 341(c)(2)(d) goes into the restrictions of when a lender may NOT call the loan due. The exclusion do NOT cover 1) transfer/sale to a non-relative, 2) transfer into a Trust where the borrower is not a beneficiary or an occupant of the property. Read the 80 page Act on the link below.
That's a longer conversation - BUT if you are contemplating doing a closing like this ... the worksheet below might be a good place to start working through the details. Download it now and let us know how we can help you!