14388 Fontaine Ct, Woodbridge: Limited Equity, Mortgage Arrears and a Move to Family
Purchased March 1, 2018 · Woodbridge, Virginia
A listing, a high mortgage balance and a change in household income
The seller had separated from her husband and had been trying to sell the property with a Realtor. Reduced household income contributed to missed mortgage payments. The mortgage balance was high enough that a substantial price reduction was difficult.
By the time she contacted House For Cash, the mortgage was approximately five months behind. The lender was threatening possible foreclosure; this account does not establish that a foreclosure had been filed. The seller wanted to move to be with family in Maryland.
The house needed only minor updates
The property was generally in good condition. Its condition was not the main obstacle: limited equity meant a normal discounted cash purchase did not leave enough room for the seller’s cash and relocation goals.
A written purchase agreement using the existing financing
House For Cash proposed purchasing the property subject to its existing financing. The buyer and seller agreed to the terms in writing. The existing mortgage remained in place, and House For Cash agreed to reinstate or catch up the mortgage at closing and continue the monthly mortgage payments afterward.
House For Cash acquired the property on March 1, 2018. The seller received the agreed proceeds to move forward and relocate with family. After acquisition, the property was updated and resold several months later.
Mortgage arrears and title transfer were separate matters
The seller’s high loan balance, overdue payments and relocation needs affected which purchase structure could work. In this transaction, arrears were addressed separately as part of the subject-to purchase. Transferring title itself did not cure the delinquency.
A subject-to purchase does not automatically release the original borrower from liability to the lender. The written agreement, mortgage terms and separate actions to address arrears matter. This transaction is not a promise of foreclosure relief, a particular payment arrangement or an outcome for another seller.
Read what selling subject to an existing mortgage means, including the obligations that may remain with the seller.
Considering your own options?
A property can be in good condition while its financing makes a conventional sale difficult. Explore selling with limited equity or options when relocating. We can review the property, obligations, timing and goals without committing you to a particular transaction.
Request a no-obligation property review or call (407) 214-0772.