subject to

Definition

Buying property while leaving the existing mortgage in place under the original borrower's name. It's legally questionable, financially risky, and somehow still happens regularly.

Example Usage

We bought the property subject to the existing loan, and we're just hoping the bank never notices the owner changed.

Origin

Creative financing technique that emerged in distressed property sales

Fun Fact

Most mortgages have due-on-sale clauses that technically allow lenders to call the loan if ownership transfers, making 'subject to' deals a legal time bomb.

Source: Creative real estate financing terminology

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right of first refusal

A contractual right giving someone the first opportunity to purchase a property before the owner can sell to others. It's like a permanent dibs on real estate.

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escalation clause

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debt-to-income ratio

The percentage of your gross monthly income that goes toward debt payments, used by lenders to determine if you can afford a mortgage. It's basically a mathematical judgment of your life choices.

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