Subject-To: We Take Over Your Payments

Key Takeaways

We take over your existing mortgage payments, giving you immediate financial relief
Your mortgage stays in your name temporarily while we manage and pay it on your behalf
You continue to benefit from positive credit reporting as payments are made on time
Works especially well when you have little or no equity, making a traditional sale impractical
Avoids out-of-pocket costs for commissions, closing costs, and excise taxes that could force a loss

A subject-to purchase means Focus Estate Management takes over your existing mortgage payments while the loan stays in your name for a period of time. This gives you immediate relief from monthly payments, protects your credit, and avoids the costs of a traditional sale. We eventually buy out the mortgage completely, but in the meantime, you are free from the financial burden of the property.

This solution is especially valuable when selling through traditional channels would actually cost you money. When you factor in agent commissions (5-6%), closing costs (1-3%), excise tax (1.28-3%), and potential repairs, many homeowners discover they would need to bring cash to the closing table or face foreclosure. Subject-to eliminates that problem entirely.

How Does a Subject-To Purchase Work?

We evaluate your situation: mortgage balance, monthly payment, property condition, and your goals
We agree on terms: how long we will make payments, what happens at the end, and your responsibilities (which are minimal)
We take possession of the property and begin making your mortgage payments on your behalf
We manage the property: find tenants, handle maintenance, and keep it in good condition
Your credit benefits: because the mortgage payments are being made on time, your credit score continues to benefit from the positive payment history
We buy out the mortgage when we refinance or sell the property, releasing you from the loan completely

Why Would I Choose Subject-To Over a Cash Sale?

Subject-to works best in situations where a cash sale or traditional sale does not make financial sense:

Little or no equity: If your mortgage balance is close to or above the home’s value, selling traditionally means paying out of pocket at closing. Subject-to avoids this entirely.
Behind on payments: If you are falling behind, we can bring the mortgage current and start making payments, potentially stopping foreclosure proceedings.
High interest rate environment: If your existing mortgage has a favorable rate locked in from years ago, the terms are more valuable than today’s retail pricing and rates. This lets us offer a solution where the numbers otherwise would not work.
Cannot afford selling costs: Commissions, excise tax, closing costs, and repairs can easily total 8-12% of the home price. If you do not have that equity, subject-to is the way out.

How Does This Compare to Other Options?

Option	Your Costs	Credit Impact	Speed	Best For
Subject-To (Us)	None	Positive (payments made on time)	Fast	Little/no equity, behind on payments
Cash Sale	None	Neutral	7-14 days	Owners with equity who want speed
Foreclosure	Varies	Severe negative (7+ years)	120+ days in WA	Worst-case scenario, avoid if possible
Short Sale	None (lender absorbs loss)	Significant negative	3-6+ months	Underwater, lender must approve
Traditional Sale	7-12%	Neutral	60-120+ days	Owners with equity in good market

What About the Due-on-Sale Clause?

Most mortgages include a due-on-sale clause that technically allows the lender to call the loan due if ownership or possession changes. In practice, lenders rarely enforce this as long as payments are being made consistently and on time. They care about receiving their money, not about who is writing the check. That said, we always discuss this openly with sellers so you understand the arrangement fully before moving forward.

Frequently Asked Questions

Is my credit at risk if you stop making payments?

The mortgage is in your name, so technically your credit is tied to it. However, our business model depends on maintaining these properties and making payments reliably. We have strong financial motivation to keep every mortgage current. We document everything in our agreement and you can verify payments are being made.

How long does the mortgage stay in my name?

This varies by situation. Typically, we plan to refinance or sell the property within 2 to 5 years, at which point the mortgage is paid off or transferred entirely. We discuss the expected timeline upfront.

Can I buy another home while my name is still on this mortgage?

It depends on your overall financial picture and what lenders require. Having an existing mortgage can affect your debt-to-income ratio, but some lenders will work with documentation showing the payments are being made by another party. A good mortgage broker can help you understand your options.

What if I am already behind on payments?

We can often bring your mortgage current as part of the subject-to agreement. This stops the negative credit reporting and can halt foreclosure proceedings. The sooner you reach out, the more options we have to help.

Do I get any cash at closing?

In most subject-to deals, the primary benefit to you is payment relief and credit protection rather than a cash payout. If you have significant equity, a cash purchase may be a better fit. We will help you determine which solution works best for your situation.

What areas do you cover?

We work throughout Thurston County, Lewis County, parts of Pierce County, and Shelton in Mason County. Compare your options or call us at (253) 733-0007.

Struggling with mortgage payments or facing foreclosure?
Call us at (253) 733-0007 or tell us about your property. We will help you explore all your options, including subject-to.