Is subject-to legal in Texas?

Yes. Texas does not prohibit subject-to transactions. Title transfers via a standard warranty deed recorded with the county, and the underlying mortgage remains in the seller's name. The deal does, however, technically trigger most lenders' due-on-sale clause — see our due-on-sale guide for what that means in practice.

Who actually makes the mortgage payments after a subject-to closing?

The buyer does. After closing, the buyer (or their servicing company / loan-servicing trust) sends the monthly payment directly to the seller's lender. Reputable buyers use a third-party loan servicer so the seller can verify each payment online.

Why would a seller ever agree to this?

Speed, certainty, and equity preservation when traditional sale isn't viable. Common scenarios: behind on payments and headed for foreclosure, owe close to market value (no equity for an agent's commission), need to move immediately, inherited an underwater property, or want to avoid the hit of a short sale on credit.

How is this different from owner financing?

In owner financing, the seller IS the bank — they hold a note from the buyer. In subject-to, the seller's existing bank stays the bank — the buyer just takes over those payments. Different paperwork, different risk profile. Full comparison here.

Does the seller's credit get affected by subject-to?

Yes — both ways. Late or missed payments by the buyer hurt the seller's credit (the loan is still in the seller's name). On-time payments build the seller's credit. This is the single biggest risk and the biggest reason to work with an established Texas investor who uses a third-party loan servicer.

Do you offer subject-to in San Antonio specifically?

Yes. We've structured subject-to deals across Bexar, Comal, Guadalupe, and Nueces counties. See our San Antonio case study for a real example with numbers.

Subject-To · 2025 Guide

Subject-To Real Estate, Explained for Texas Homeowners.

Subject-to (or “sub2”) is one of the most misunderstood ways to sell a house in Texas. The buyer takes ownership, but the seller’s mortgage stays in place and the buyer just keeps making the payments. This hub walks through what it is, how it compares to owner financing, the due-on-sale clause every conventional loan carries, and the real risks on both sides.

See If Subject-To Fits Your Situation Read the Cluster

The 60-Second Version

What a Subject-To Deal Actually Is

In a normal sale, the buyer brings new financing, the seller’s mortgage gets paid off at closing, and the deed transfers. In a subject-to sale, the deed still transfers at a title company — but the seller’s existing mortgage stays right where it is. The buyer takes the property “subject to” that existing loan and continues making the monthly payments on the seller’s behalf.

It’s legal in Texas, recorded at the county clerk like any other deed, and closed at a real Texas title company. The trade-offs are nuanced — that’s why this hub breaks the topic into six dedicated guides instead of trying to cover it in one page.

If you’re behind on payments, our Texas foreclosure help guide is the right starting point — subject-to is one of the six real options it walks through.

The Full Cluster

Read Each Piece Standalone

Each guide below is a self-contained explainer. Start anywhere — they all link back here.

What Is Subject-To Real Estate?

The plain-English definition: buyer takes title, seller's loan stays in place, payments continue on the original mortgage.

Read guide

Subject-To vs. Owner Financing

Same family, two very different deals. Who holds the note, who's on the loan, and which one fits which seller.

Read guide

Due-on-Sale Clause Explained

Every conventional mortgage has one. What it says, when lenders enforce it, and how Texas subject-to deals are structured around it.

Read guide

Subject-To Risks for Sellers

Your name stays on the loan. Here's exactly what that means for your credit, your DTI, and your VA entitlement.

Read guide

Subject-To Risks for Buyers

Due-on-sale calls, insurance escrow surprises, and what happens if the seller files bankruptcy.

Read guide

San Antonio Subject-To Case Study

A real Bexar County deal — numbers, the mortgage, how we structured it, and what the seller walked away with.

Read guide

When It Fits

Sellers Who Benefit Most From Subject-To

You owe close to (or above) what the house would sell for retail — there's no equity for an agent's 6% commission.

You're behind on payments and a traditional sale won't close before the first-Tuesday auction.

You inherited a property with an existing mortgage and don't want to refinance into your name.

You need to move immediately — job, divorce, medical — and can't wait 60–90 days for a conventional buyer's loan.

Your house needs repairs that disqualify it for FHA/VA/conventional buyers.

You want your mortgage paid down (and your credit built) by the new occupant’s payments.

Common Questions

Subject-To FAQ

Think Subject-To Might Fit Your Situation?

Tell us about your property. We’ll walk you through all your options — subject-to, straight cash, or referral to a traditional agent if that fits better. No pressure.

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