Frequently Asked Questions

The mortgage will still be in your name but it will continued to be paid. We ensure all related obligations are addressed, so you are free from mortgage payments once we take over. Moreover, because we’ve been making the mortgage payments on time and in full, your credit will improve. 

You can get a new mortgage for a new home as fast as the day after selling your old house via “subject to” which is us taking over your mortgage payment. Doing so is dependent on your personal credit and lender requirements. Once we take ownership of your old mortgage, the title is transferred out of your name. You need only to present this to the new lender that you have sold your old property via “subject to” and that your old mortgage is currently being paid. So the old mortgage will no longer count against your debt-to-income ratio. Moreover, because we’ve been making the mortgage payments on time and in full, your credit will improve. 

When we buy homes subject to its existing mortgage, our commitment is to continue to pay the mortgage and all other obligations related to the home until the mortgage balance hits zero. Nevertheless, we are willing to negotiate a timeframe in which we are required to pay off the existing mortgage. Although there is no guarantee of the below occurring, there are a couple scenarios where the mortgage you sold would be paid off early.

A.) The 1st scenario where the mortgage would not stay in your name is if the home is sold on the MLS which could happen as soon as the home reaches 25% equity. In this scenario, the sale proceeds would be required to pay off the existing mortgage in full.

B.) The 2nd scenario where the mortgage would not stay in your name is once the home achieves 50% equity or to take advantage of lower interest rates. In this scenario, we would refinance out of the mortgage you sold, and the new lender would pay off the “subject to” mortgage in full.

Since the mortgage remains in the seller’s name, safeguarding and improving the seller’s credit and financial standing is of paramount importance. To that end, sellers receive the following protections:

a.) Bank draft: Our commitment is to pay in-full each month the mortgage and all other obligations related to the home. At closing, a limited power of attorney will be signed giving Kingdom Realty LLC the right to set up a connection with the mortgage company so that payments can be made via ACH draft from our bank account. If desired, we will email confirmation of payment to you each month. Furthermore, after selling your home subject to the existing mortgage, you will retain access to your online account and may contact the lender directly to verify the mortgage you sold is current.

b.) Cash account: Although unheard of, should the lender choose “to call” the loan due, our secure financial position guarantees that we’ll be able to meet our financial responsibilities to you. Furthermore, when renters of the house you sold subject to the existing mortgage do not pay rent, our cash account guarantees that the mortgage payment will continue being made.

c.) You can foreclose on us: When someone doesn’t make their mortgage payment the bank can take back the home. And remember that when you sell your mortgage you become the bank? At closing you can elect to receive a promissory note which is a signed document that promises to pay the balance of the existing mortgage. You can also elect to receive a deed of trust, which is a document that enforces the promissory note.

With these documents, if Kingdom Realty LLC does not make the mortgage payments (we guarantee all obligations will be paid in full, on time), you can foreclose on us and take back the property! Although this situation may not be ideal for you or us, it wouldn’t be terrible for you, either.

Why? You would keep the cash that we paid you at closing, and you would get to capitalize on any improvements and appreciation that have taken place since you sold your home’s mortgage to us. We obviously do not want to be foreclosed upon, so we are highly incentivized to follow-through on all our commitments to you.

Once the title of the property is transferred out of your name, you no longer have any tax obligations or receive the tax deductions associated with the home.

a.) Due on sale clause. Every mortgage has a provision that is commonly referred to as the due-on-sale clause which says that the lender has the right, but not the obligation, to call the mortgage due upon a change in ownership. On the surface, this seems quite scary; however, banks rarely, if ever, invoke this clause. The Due-on-sale merely enables the lender to choose to act – if the seller transfers title, then the lender may demand that the mortgage be paid off. But the lender would have to decide that such action is in its best interest, and most hesitate at accelerating an otherwise performing loan. Experience shows that the risk of acceleration is small while the loan remains current.
This clause has never been invoked on any of the homes we’ve bought subject-to. In fact, we’ve never heard of this happening in Iowa.
b. The mortgage is a VA Loan. Although with VA loans you absolutely can sell a home subject to its existing mortgage, one must note that it could impact your ability to obtain another VA loan in the future. To stay within the VA mortgage entitlement limit, the total amount of all VA loans in the name of a single individual cannot exceed $647,200. Even though obtaining a 2nd VA loan is possible, we must reiterate that there are specific criteria that must be met and therefore we encourage homeowners to speak with a reputable VA lender or to investigate other low-cost mortgage options like Fannie Mae, Freddie Mac, and FHA loans.
c. The mortgage stays in your name. For some homeowners, this may not be ideal while for others, it’s extremely beneficial. Homeowners who intend to buy a new home after selling their old home, may not be immediately eligible for a new mortgage if they do not meet standard underwriting requirements. Conversely, homeowners with poor credit will see a boost in their credit score as Kingdom Realty LLC continues to make the monthly mortgage payments.

a.) Make more money: In most situations you will make more money than you would with a traditional sale. Here’s why: (1st) you pay no closing costs, (2nd) Kingdom Realty LLC pays no financing costs, and (3rd) KingdomRealty LLC passes its savings onto you. In short, you have no expenses, our costs are reduced, and therefore we can pay you more.

b. Make money even with no equity: Homeowners with less than 11% equity who try to sell traditionally will have to bring money to the closing table. When selling your home subject to its existing mortgage where you have 11% or less in equity, bringing more money to the closing table will not be not be necessary since there are no realtor fees involved.

c. Your mortgage is brought current: If you’re behind on mortgage payments, Kingdom Realty LLC will catch-up all missed payments so that your loan is brought current. This is a critical step to improving your credit.

d. Fastest closing: Homeowners who need fast cash or a quick closing can sell their home subject to the existing mortgage in as little as 1 day. Closing a traditional sale averages 40-50 days.

e. No inspections, repairs, surveys, or appraisals: You went through this process when you bought the home. Because you already have a loan in place, there is no need to repeat these steps, so closing a subject to mortgage is very simple!

f. Easiest closing: Our team provides full-service sell your mortgage solutions meaning we complete all tasks needed to close. On occasion, you will need to provide basic information but your most time intensive obligation will be signing closing documents.

No, you don't need to move out immediately. We will work with you to find a timeline that suits your needs and situation.

No, there are no upfront costs. We aim to provide a solution without adding financial burden.