Option 1: Formal Assumption (You Come Off the Loan)
A formal assumption is the lender-approved version. The buyer applies, the lender underwrites them, and the buyer is legally substituted as the borrower. With a release of liability, your name comes off the debt entirely.
This is available on most FHA, VA, and USDA loans, which are assumable by design. It is rarely available on conventional loans, which almost always contain a due-on-sale clause. Timeline: 45–90 days. Cost: an assumption fee plus normal closing costs.
If your loan is a VA loan, a formal assumption is also the only path that can restore your VA entitlement — see risks for sellers for why that matters if you plan to buy again.
Option 2: Subject-To (Buyer Pays, Your Name Stays)
The buyer takes title and makes the payments, but the loan stays in your name and is never formally assumed. No lender approval, no underwriting, no waiting — Texas subject-to closings routinely happen in 7–14 days.
The trade is that your credit continues to reflect that mortgage until it's refinanced or paid off. Read sell house subject-to for the full mechanics, and the due-on-sale clause for the one legal risk that matters.
Option 3: Wrap / Owner Finance (You Become the Middleman)
The buyer signs a new note to you at a higher rate; you keep paying your existing lender and pocket the spread. This makes sense when you have equity and want monthly income, but it keeps you in the loop for years. Full detail in the owner financing guide.
Which One Fits Your Situation
**You need out fast and can't wait on underwriting** → subject-to. Days, not months.
**You're behind on payments or facing a posting date** → subject-to, and start with our foreclosure help guide. A buyer can bring the loan current at closing.
**You have an FHA or VA loan and time to spare** → formal assumption. Cleanest outcome; your name comes off.
**You have real equity and want income** → wrap or owner finance.
What Doesn't Work
Simply handing someone the keys and asking them to pay. With no deed transfer and no recorded documents, you keep all the liability and none of the control; if they stop paying you have no efficient remedy short of eviction and a wrecked credit file.
Any arrangement without a title company, recorded deed, and written agreement is not a mortgage takeover — it's an informal promise. Don't do it.