A "Subject-To Transaction" allows a buyer to take over the seller's existing mortgage on a property. The ownership of the house transfers to the buyer, but the original mortgage remains in the seller's name.

Sell Quickly and Easily: Subject-to transactions can be an attractive option for sellers who need to move quickly or face difficulty selling traditionally due to factors like underwater mortgages. Avoid Out-of-Pocket Expenses: Sellers don't need to bring money to closing and can potentially walk away with a profit, depending on the agreement. Offload Responsibility: Sellers are no longer liable for mortgage payments, HOA fees, repairs, or other property-related costs.

Underwater Mortgage: Sellers who owe more on their mortgage than the property's current value can benefit from selling subject-to.
Facing Foreclosure: This option can help sellers avoid foreclosure by transferring the ownership and payment responsibility.
Motivated Sellers: Sellers who need to sell quickly and are willing to be creative with financing might consider subject-to transactions.

Debt-to-Income Ratio (DTI): While the original mortgage remains in the seller's name, some investor-friendly lenders may exclude it from the buyer's DTI if the buyer has a documented lease agreement with a reliable tenant covering the mortgage payment. Credit Score Impact: Subject-to transactions typically don't directly impact the buyer's credit score, but missed payments by the buyer can be reported to credit bureaus by the original lender, negatively affecting the seller's score.

if 2 months of payments were missed through a "performance deed". The seller would not have to foreclose and the deed would transfer back into the sellers name automatically, allowing them to sell the property again; essentially double dipping.

We deed the property back to the seller (stopping the due on sale) and execute an "Executory Contract" or "Agreement for Sale" with the same terms.