Subject-To (Sub2)
Sell your home. Keep the low rate working for you.
How Subject-To (Sub2) Works
We purchase your property "subject to" your existing mortgage. The deed transfers to us; your loan stays in place; and we make every payment on time, every month, for the life of the loan.
Is This Right For You?
- Homeowners with a low interest rate mortgage (5% or lower) they don't want to lose
- Sellers with little to no equity who can't afford a traditional sale with agent commissions
- Owners facing foreclosure, divorce, or relocation who need speed and certainty
- Landlords who are tired of managing a property but can't sell for enough to pay off the mortgage
The Process
- We sign a purchase agreement and the deed transfers to Quelark at closing.
- Your existing mortgage stays in your name (by agreement with you) but we take over every monthly payment.
- We typically pay you cash for any equity position, moving expenses, or to settle the account.
- We either hold the property long-term, renovate and resell, or sell on seller-financing terms.
- Your credit improves as we make every payment on time — which shows as on-time mortgage history.
Why Sellers Choose This Strategy
No Repairs Needed
We take the property exactly as it stands — no painting, no cleaning, no staging.
No Agent Commissions
You save 5-6% that would otherwise go to listing and buyer's agents.
Fast Close
We can typically close in 7-21 days instead of 45-90 for a retail sale.
Credit Relief
We take over the payment burden while the loan history keeps reporting positively in your name.
Common Questions
Is Subject-To legal?
Yes. Subject-To sales have been used for decades and are explicitly permitted by the Garn-St. Germain Act of 1982 for residential property transfers. The structure is standard in creative real estate finance across the United States.
What about the "due-on-sale" clause?
Most residential mortgages contain a due-on-sale clause, but lenders rarely exercise it when payments are being made on time. Quelark has a strong track record of keeping loans current for the entire term.
What if Quelark stops paying?
We provide a performance deed of trust or mortgage back to you as additional security, along with automated payment systems and third-party servicing so you can verify payments are being made each month.
Will my credit be affected?
Positively. We make every payment on time, so your mortgage continues to report as paid-as-agreed — which is great for your credit profile.
Important Note
This page is educational and describes how Quelark typically structures Subject-To (Sub2) transactions. Actual terms depend on your property and situation. This is not legal, financial, or tax advice — always consult a licensed attorney and CPA before signing any real estate agreement.
Ready to Explore Your Options?
We'll make you a fair, no-obligation offer within 48 hours. Tell us about your property and let's find the best solution together.