If you're unsure what the difference is between seller finance and subject to, subject to (Subto) basically means that when you buy the property, you pay for the remaining loan or mortgage payments. This is something that should be considered as part of your entry fee when you purchase anything with creative finance.

What is a sub 2 deal?

In a subject to, sometimes called a subject 2 deal, the existing financing that a homeowner has setup is taken over by an investor. This route is basically paying for the mortgage already in place through an agreement with a homeowner.

How do subjects deal with work?

A subject to real estate deal is when you buy or sell a property with an existing mortgage. Under a subject to deal, the buyer takes over the property, but the seller retains the mortgage. The buyer makes mortgage payments for the seller, and the lender is not informed that the property has been transferred.