Why Landlords Should Consider Selling “Subject To”
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You're not alone if you're sick of the headaches and risks of being a landlord. When you're dealing with an unwanted property, renting it out might be a viable option if you think it can provide a steady stream of passive income.
But what if there's an alternative that might just save you a lot of time and stress? Here's how selling your property "subject to" an existing mortgage would be a better option:
Being a Landlord Involves A LOT of Headaches
Many landlords envision easy income from rent checks. However, the pitfalls and responsibilities that come with being a landlord can turn this dream into more of a nightmare:
Broken appliances and leaky roofs quickly eat into your profits.
Finding your favorite tenant can be difficult, as some tenants pay late, some even not pay at all.
Each day a property sits unoccupied is a tangible loss of income, especially when the rental income is used to pay the mortgage.
Even a minor misstep with Landlord-Tenant laws can lead to costly legal fights.
The "Subject To" Alternative
Selling your property "subject to" the existing mortgage is a strategy that involves a buyer taking over the mortgage payments, with the original financing simply staying connected to the property.
Here's how this option can help you:
Selling "subject to" is faster than traditional methods, as the buyer is not required to go through the process of obtaining a new mortgage.
Say goodbye to mortgage payments and skip the buyer’s loan approval maze.
A “subject to” sale can prevent foreclosure if keeping up with mortgage payments is a struggle, boosting your credit and finances.
Quick relief from financial and management burdens of an unwanted property.
Important Considerations
While selling “subject to” presents a unique opportunity, ensuring a smooth transition involves selecting a reliable buyer and keeping an eye on the mortgage. By going through a meticulous vetting process of potential buyers and diligently monitoring the mortgage account, you can approach this strategy with greater confidence and a secure positive outcome.
The Bottom of the Boot
Being the Beyoncé of landlords might seem like a lucrative venture, but it's not for everyone. If the risks and responsibilities seem daunting, you might consider selling your property "subject to" the existing mortgage—a simple and fast exit strategy. It offers a quick exit to property ownership burdens, getting you back in financial control.
Consult with a real estate attorney or a professional advisor before deciding, to weigh all your options carefully. Happy selling, and may your next chapter be a smoother ride!
Considering a "subject to" sale? Stone Property Buyers offers a transparent and efficient process. We are passionate about helping struggling property owners move forward while creating greater future financial flexibility. Contact us today to discuss your options!