One of the most common questions we get from homeowners exploring subject-to is: “How exactly does this work, and how do I know you’ll actually make the payments?” Fair question. Here’s exactly how the process works.
Step 1: We Review Your Loan Details
Before we can make an offer, we need to understand your loan: the balance, interest rate, monthly payment, lender name, and loan type (conventional, FHA, VA, etc.). This typically takes a 10-minute phone call.
Step 2: We Make a Written Offer
If the deal works for us, we present a written purchase agreement that clearly states: the purchase price (usually $0–$5,000 depending on equity), the fact that we’re assuming payment responsibility, and the closing timeline.
Step 3: Title Company Handles the Closing
We use a licensed title company — not a handshake deal. The title company prepares all documents, records the deed transfer, and provides both parties with closing statements. You receive documentation of the transaction.
Step 4: We Set Up Payment Systems
Immediately after closing, we set up direct payment to your lender. We can also arrange for you to receive payment confirmation emails so you can independently verify that payments are being made on time.
What If We Don’t Make Payments?
This is the key concern. Here’s our answer: our business model depends entirely on honoring these obligations. A default would destroy our reputation, trigger a potential lawsuit, and end our ability to operate. We have strong financial motivation to make every payment on time, every month.
Safeguards Sellers Can Put in Place
Authorizing Communication With Your Lender
Servicers generally won't discuss your loan with anyone else without your written permission. A signed third-party authorization lets the buyer talk to the servicer about payments and escrow. You can still call the lender yourself at any time, and keeping that line open is a smart habit.
Keeping Your Online Loan Login Active
Because the loan stays in your name, you can keep your online account with the servicer and check it whenever you like. Looking each month to confirm the payment posted is simple and gives you independent proof alongside any confirmations you receive. Don't hand over your password; just keep your own access.
Homeowners Insurance After the Deed Transfers
After closing, the property needs insurance that matches the new ownership, and the lender expects coverage to stay in force. Ask how the policy will be set up and whether you will receive a copy. Insurance arrangements in subject-to sales vary, so talk with an insurance agent if anything is unclear.
Looking Up the Recorded Deed Yourself
Once the title company records the deed, it becomes public record with the Clark County Recorder. You can look it up to confirm the transfer was recorded correctly. Keep copies of the deed, the purchase agreement and the closing statement in one place in case you ever need them.
Getting Independent Legal Advice First
Before closing, have a Nevada attorney read the agreement and explain your rights if payments are ever missed. We can't give legal advice. Our articles on the due-on-sale clause, seller safety and why experience matters cover other questions to bring to that meeting.
Have more questions? Call (877) 800-3187.