If you’re trying to sell your home in Orlando, Kissimmee, Winter Garden, Lake Nona, or anywhere in Central Florida and you have little to no equity plus a low 2–3% interest rate, you’ve probably received a “Subject To” (or “Sub-To”) offer and immediately thought: “This sounds like a scam.”
You’re not alone. Most sellers and even many agents delete these offers without a second look.
But here’s the truth: When done correctly with proper legal protection, a legitimate “Subject To” transaction is 100% legal, recorded with the county, and can be the fastest, highest-netting way to sell your home in today’s market.
This comprehensive guide explains everything.
What Does “Subject To” Mean in Real Estate?
“Subject To” (often abbreviated Sub-To or Sub2) is a creative financing strategy where the buyer purchases your property subject to the existing mortgage — meaning:
- The loan stays in YOUR name
- The buyer takes over making the monthly mortgage payments
- You deed the property to the buyer (or a trust/entity they control)
- You walk away with cash (often more than a traditional sale) without paying off the loan at closing
The full legal phrase on the purchase contract is: “Subject to the existing loan(s) secured by the property”
It is NOT loan assumption (which requires lender approval). The mortgage remains in the seller’s name, but the buyer becomes the legal owner and is contractually obligated to make the payments.
How a “Subject To” Deal Works – Step by Step
- You receive an offer that says “Subject To existing financing”
- Buyer (or their entity) agrees to bring you cash at closing (your “equity” + premium)
- You sign a purchase agreement with strong protective language
- Closing happens at a reputable title company or real estate attorney
- You deed the property to the buyer’s LLC or land trust
- Mortgage and note stay in your name — no payoff
- Buyer begins making payments directly to your lender (or through a third-party servicer)
- You receive your cash proceeds — often $10k–$50k+ more than a traditional sale
Why Buyers Love “Sub-To” Deals (And Pay More)
- They get your ultra-low 2.5–3.5% interest rate (vs today’s 7%+ rates)
- No bank qualification needed
- They can buy with little money down
- Instant positive cash flow or long-term wealth building
Because of this, experienced investors will pay a premium — often 5–15% above traditional retail or cash offers — just to lock in your low rate.
Risks for the Seller – And How to Eliminate Them
| Risk | How to Protect Yourself |
|---|---|
| Buyer stops paying → foreclosure in your name | Use a third-party loan servicer (e.g., LoanCare, Carrington, or NoteServicingCenter) that auto-debits buyer and pays lender |
| Damage to your credit if payments late | Require buyer to put 6–24 months of payments in escrow upfront + authorize you to monitor the loan online |
| Due-on-sale clause triggered by lender | 99.9% of the time never enforced (Garn-St. Germain Act protects most transfers to trusts/LLCs). Still use LLC or land trust. |
| Buyer sells or refinances without your knowledge | Record a seller-financed second mortgage or performance deed of trust as collateral |
| Title fraud | Close only with a licensed Florida title company or real estate attorney |
The Bulletproof “Subject To” Closing Checklist (2025)
Work with professionals who have closed 100+ Sub-To deals. The safest structure includes:
- Title handled by a reputable Florida real estate attorney
- Buyer forms an LLC or land trust (you are NOT on the entity)
- Third-party servicing agreement (mandatory)
- Seller receives login to monitor loan 24/7
- 12–24 months of payments held in escrow
- Performance mortgage or vendor’s lien recorded in your favor
- Insurance updated with you as “additional insured”
- Warranty deed with right of reversion clause
When all these are in place, your risk drops to nearly zero.
Can You Really Get a Higher Price with “Subject To”?
Yes — here are real 2024–2025 Central Florida examples:
| Location | Traditional Cash Offer | Subject-To Offer | Difference |
|---|---|---|---|
| Kissimmee | $365,000 | $405,000 | +$40,000 |
| Winter Garden | $480,000 | $535,000 | +$55,000 |
| Lake Nona | $550,000 | $610,000 | +$60,000 |
Buyers pay the premium because they save $800–$1,500+/month vs a new loan.
Final Word
A “Subject To” offer is not a scam — it’s one of the most powerful creative financing tools available in 2025.
But it must be structured correctly.
If you have a low-rate mortgage and little equity in Orlando, Kissimmee, Winter Garden, Lake Nona, Clermont, or anywhere in Central Florida and want to explore whether a “Subject To” deal makes sense for you, reach out to a team that actually understands these transactions.
Realtor Stephens Team has helped dozens of sellers navigate Subject To and creative financing deals safely. 📞 407-603-1664 ✉️ stacyann@realtorstephens.com 🌐 www.realtorstephens.com
They’ll review your situation for free and only move forward if it truly benefits you.