Subject To, question

3 Replies

What's the difference between "subject to" and "assumptions"

I've heard about both but is there a difference at all?

@Tim B.

An assumption is that you are "assuming" the financial responsibility of the loan. I am located in San Antonio, Texas and if you are assuming a loan it usually means that you are getting bank approval and the loan will appear on your credit.

With a sub-to, you are not assuming the financial obligation of the loan you are taking the deed to the house "subject to" the existing mortgage. meaning it will say on the previous owner's credit. 

Basically, assumptions need bank approval and will appear on your credit and a sub-to requires no approval and won't appear on your credit.

Hope that was what you were looking for.

John Barr, Real Estate Agent in TX (#658121)
210-268-5797

Thanks for the help there. 

That's pretty much what I thought.

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