Category: creative finance

When Jennifer Walsh first heard about someone “taking over” her mortgage payments, her immediate reaction was suspicion. “It sounded too good to be true,” she admits. “I owed $395,000 on a house worth maybe $350,000. Who would voluntarily take on someone else’s underwater mortgage?”

Jennifer’s skepticism was completely reasonable. After months of sleepless nights, mounting stress, and no good options from traditional real estate, the idea that an investor would simply start making her $2,400 monthly mortgage payment seemed impossible.

Six months later, Jennifer’s mortgage is current, her credit is intact, and she’s living comfortably in a rental home she can actually afford. The investor who took over her payments has a performing asset, and everyone won.

So yes, investors really can take over your payments when you’re underwater. Here’s exactly how it works.

The Skepticism is Understandable

“My first thought was, ‘What’s the catch?'” explains Mark Rodriguez, whose Arvada home was $60,000 underwater when he contacted SellFastDenver last year. “I’d been dealing with pushy wholesalers making lowball offers. When someone said they’d just take over my payments, I figured they were lying or it was some kind of scam.”

Mark’s wariness made perfect sense. Most homeowners have never heard of subject-to agreements, and the concept sounds impossible when you first encounter it:

• Why would someone take over an underwater mortgage?
• How is this legal if the bank doesn’t approve it?
• What happens if the investor stops making payments?
• What’s in it for them if there’s no equity?

These questions reflect healthy skepticism, not ignorance.

How Payment Takeover Actually Works

The formal name is a “subject-to” agreement, meaning the investor buys your property “subject to” the existing mortgage remaining in place. Here’s the step-by-step process:

Step 1: Property Evaluation The investor analyzes your situation, confirms the mortgage balance, and determines if the property works for their investment strategy. Unlike traditional buyers, they don’t need equity to make the deal profitable.

Step 2: Legal Documentation You sign a deed transferring ownership to the investor while the mortgage stays in your name temporarily. All paperwork goes through a title company and should be reviewed by a real estate attorney.

Step 3: Payment Takeover The investor begins making your mortgage payments through a professional servicing company. You receive confirmation that payments are being made on time.

Step 4: Ongoing Management The investor handles all property taxes, insurance, maintenance, and tenant management. You’re completely removed from any property responsibilities.

Why Investors Do This (The Economics)

Here’s why taking over underwater payments makes financial sense for investors:

Cash Flow Potential A $395,000 house with a $2,400 mortgage payment might rent for $2,800-3,200 monthly in the Denver market. The investor makes $400-800 monthly cash flow without needing a down payment.

No Bank Financing Required In today’s high-interest environment, investors can take over your 3-4% mortgage rate instead of getting a new loan at 7-8%. This creates immediate profit advantage.

Long-term Appreciation Even if the property is underwater today, investors typically hold for 5-15 years. Denver area properties historically appreciate over longer periods, creating eventual equity.

Tax Benefits Investors can depreciate the full property value, often creating significant tax advantages that improve the deal’s profitability.

What’s In It for Underwater Homeowners

The benefits for homeowners like Jennifer and Mark are substantial:

Immediate Payment Relief Your monthly mortgage obligation disappears instantly. No more stress about making payments you can’t afford.

Credit Protection Unlike foreclosure, your credit remains intact. The mortgage continues being paid, so there’s no negative impact on your credit score.

No Money Required You don’t bring cash to closing like traditional sales. The investor typically covers all closing costs.

Clean Exit You can move on with your life instead of being trapped by an underwater mortgage. Many families relocate to more affordable housing immediately.

Addressing the Common Concerns

“What if they stop making payments?” Legitimate investors use professional mortgage servicing companies and maintain insurance to protect against this scenario. Your attorney should structure agreements with specific protections.

“How is this legal if the bank doesn’t know?” Subject-to agreements are completely legal. The mortgage contains a “due on sale” clause that theoretically allows the bank to call the loan due, but this rarely happens with performing payments.

“What happens to my remaining equity?” If you’re truly underwater, there is no equity to worry about. Some agreements include provisions for sharing future equity if the property appreciates significantly.

“Why wouldn’t I just do a short sale instead?” Short sales take 4-6 months, require proving hardship, and may still leave you owing money. Subject-to solutions typically close in 2-3 weeks with no deficiency risk.

Real Example: The Martinez Family

Carlos and Rosa Martinez bought their Westminster home in 2022 for $485,000. When Carlos lost his job in the tech layoffs, they fell three months behind on their $2,850 mortgage payment. The house had declined to approximately $430,000 value.

Traditional options failed:

• They couldn’t qualify for loan modification without income
• Short sale would take months they didn’t have
• They couldn’t afford to bring $55,000+ to closing for traditional sale

SellFastDenver’s subject-to solution worked perfectly:

• Took over payments immediately, stopping foreclosure proceedings
• Carlos and Rosa moved to a rental home costing $1,800 monthly
• Their credit remained intact, allowing Carlos to focus on finding new employment
• Six months later, Carlos landed a better job and they’re considering buying again

“We thought we’d have to declare bankruptcy,” Rosa explains. “Instead, we got a fresh start. Our kids didn’t have to change schools, and we avoided the shame of foreclosure.”

The Legal Framework

Colorado law supports subject-to transactions when properly structured:

Title Transfer The deed legally transfers to the investor through standard real estate procedures. This is recorded at the county level.

Mortgage Responsibility While your name remains on the mortgage temporarily, the investor becomes legally responsible for payments through the purchase agreement.

Professional Oversight Legitimate transactions involve real estate attorneys, title companies, and professional mortgage servicing to protect all parties.

Red Flags: Protecting Yourself

Not every investor operates ethically. Avoid anyone who:

• Refuses to use a title company or allow attorney review
• Demands immediate signing without explanation period
• Won’t provide references from recent clients
• Asks for upfront fees before closing
• Makes verbal promises without written documentation

Due Diligence Questions

Before agreeing to any payment takeover, ask:

1. How many subject-to deals have you completed in Colorado?
2. Can you provide references from homeowners in similar situations?
3. What mortgage servicing company will you use?
4. How will I receive confirmation that payments are being made?
5. What happens if you experience financial difficulties?
6. Can my attorney review all documents before signing?

The Colorado Advantage

Colorado’s real estate laws provide additional protection for homeowners:

• Strong consumer protection requirements
• Established precedent for subject-to transactions
• Professional title company oversight
• Clear legal framework for deed transfers

Making Your Decision

Subject-to solutions aren’t right for everyone, but they work exceptionally well for underwater homeowners who:

• Cannot afford to bring cash to closing
• Need to relocate quickly
• Want to protect their credit
• Have realistic expectations about the process

Your Next Step

If you’re underwater on your Denver area mortgage and traditional options haven’t worked, you owe it to yourself to understand how payment takeover solutions work.

At SellFastDenver, we’ve successfully completed hundreds of subject-to agreements for Colorado homeowners facing impossible situations. We work with experienced real estate attorneys and title companies to ensure every transaction protects your interests.

Ready to learn if payment takeover is right for your situation? Contact SellFastDenver today:

• Call: (720) 458-4722
• Text: (720) 458-4722
• Email: info@sellfastdenver.com
• Website: www.sellfastdenver.com

Get your free, no-obligation consultation. We’ll review your underwater mortgage situation and explain exactly how payment takeover works – including all legal protections and your specific benefits.

Remember: Every subject-to agreement should be reviewed by qualified real estate attorneys. We’ll connect you with experienced Colorado attorneys who specialize in creative financing transactions.

Stop wondering “Can this really work?” and start discovering how families just like yours have escaped underwater mortgages without destroying their credit or draining their savings. Call SellFastDenver today.

Real estate transactions involving subject-to agreements should always be reviewed by qualified legal and financial professionals familiar with Colorado law.

You’re staring at the numbers, and they don’t add up. Your mortgage balance is $320,000, but your house would sell for maybe $285,000. After agent commissions, closing costs, and repairs, you’d need to bring $50,000+ to the closing table just to walk away.

If you don’t have that kind of cash sitting around, you’re not alone. Thousands of Denver homeowners find themselves in this exact situation — owing more than their house is worth and unable to afford a traditional sale.

The good news? There’s a solution most homeowners have never heard of that can get you out of this mess without costing you a penny.

Why Traditional Sales Are a Financial Disaster When You’re Underwater

When you owe more than your house is worth, selling through a real estate agent creates a financial nightmare:

The Real Cost of Selling:

• Real estate commissions: 5-6% ($14,250-$17,100 on a $285,000 sale)
• Closing costs: 2-3% ($5,700-$8,550)
• Repairs and staging: $5,000-$15,000
• Title insurance and fees: $1,500-$3,000

Total cost to sell: $26,450-$43,650

Add this to the $35,000 you’re already underwater, and you’re looking at bringing $60,000+ to closing. For most people, this simply isn’t possible.

Real estate agents won’t tell you this upfront because they can’t make money unless you list with them. But the math doesn’t lie — traditional sales often make bad situations worse.

The Problems with “Traditional” Solutions

Short Sales: A 6-Month Nightmare

Most agents will suggest a short sale, where you ask the bank to accept less than you owe. Here’s what they don’t tell you:

• Average timeline: 4-8 months (sometimes over a year)
• Success rate: Only 60-70% of short sales actually close
• Credit damage: 85-160 point drop in your credit score
• Tax consequences: Forgiven debt counts as income
• No guarantee: Banks reject deals all the time, even after months of work

One homeowner we helped spent 11 months trying to short sale her house. The bank rejected three different offers, and she finally gave up when facing foreclosure anyway.

Deed in Lieu: Giving Up for Nothing

This means handing your house back to the bank. You get:

• Massive credit damage (similar to foreclosure)
• No money in your pocket
• Possible deficiency judgment for the remaining debt
• Potential tax bills on forgiven debt

Essentially, you’re doing the bank’s work for them and getting nothing in return.

The Solution Most Homeowners Never Hear About

There’s a third option that real estate agents don’t know about and banks don’t want you to discover: Creative financing through subject-to arrangements.

This approach has helped thousands of homeowners walk away from underwater mortgages without paying a single dollar out of pocket.

How Creative Financing Works

Instead of trying to sell your house the traditional way, you transfer ownership to an investor who takes over your mortgage payments. Here’s the process:

1. We evaluate your situation (usually takes 24-48 hours)
2. You transfer the deed to us through a title company
3. We take over your mortgage payments immediately
4. You walk away with no money out of pocket and no more payments

Real Results from Real People

Sarah from Lakewood: Owed $340,000 on a house worth $295,000. Facing divorce and couldn’t afford the $55,000+ to sell traditionally. We closed in 12 days, and she moved on with her life.

Mike from Aurora: Behind three months on payments, foreclosure notice already filed. Traditional sale would have taken too long. We caught up his payments and closed in 8 days.

The Johnson Family: Transferred to California for work, couldn’t sell their Denver house. Owed $285,000 on a house worth $265,000. We handled everything remotely — they never had to come back to Colorado.

Why This Works When Other Solutions Fail

Speed That Matters

• Traditional sale: 60-90 days (if you’re lucky)
• Short sale: 4-8 months with no guarantee
• Creative financing: 7-14 days

No Money Required

Unlike traditional sales, you don’t need:

• Cash for repairs
• Money for staging
• Funds for commissions
• Closing cost cash

Immediate Relief

Your mortgage payment stops the day we close. No more lying awake at night worrying about how you’ll make next month’s payment.

Minimal Credit Impact

While not perfect, this approach typically results in far less credit damage than foreclosure or even short sales.

What About the Mortgage Staying in My Name?

This is the most common concern homeowners have. Here’s how we address it:

Professional Servicing: We use third-party companies that handle all payments. You get email confirmations that payments are made on time, every time.

Legal Protection: Everything is documented through attorneys and title companies. You’re not just trusting a handshake deal.

Track Record: We’ve been doing this for years with zero payment defaults. Our reputation depends on making every payment on time.

Insurance Coverage: The property is fully insured from day one, protecting everyone involved.

Is This Right for Your Situation?

Creative financing works best when you:

• Owe more than your house is worth
• Need to move quickly (job transfer, foreclosure, etc.)
• Don’t have cash to bring to a traditional closing
• Want to minimize credit damage
• Are facing financial hardship or life changes

It might not be right if you:

• Have plenty of time to wait
• Can afford to bring $50,000+ to closing
• Have significant equity in your home

Red Flags to Avoid

Not all investors operate professionally. Watch out for:

• Anyone asking for upfront fees
• Pressure to sign without reviewing documents
• Investors who won’t use title companies or attorneys
• No references or local track record
• Promises that sound unrealistic

Take Action Before It’s Too Late

Every month you wait costs you more money in payments on a house you can’t afford to keep. Here’s what to do right now:

1. Stop throwing good money after bad — Don’t keep making payments on a house you’ll never be able to sell profitably
2. Get a professional evaluation — Find out exactly what your options are
3. Compare approaches — See how creative financing stacks up against traditional methods
4. Move quickly — The best solutions require decisive action

You Don’t Have to Choose Between Bad and Worse

Being underwater on your mortgage isn’t the end of the world. While traditional real estate solutions often make your situation worse, creative financing can get you out clean.

The families we help aren’t looking for a perfect solution — they need a practical one. They need to move on with their lives without financial catastrophe.

If you’re tired of being trapped by a house you can’t afford to keep or sell, it’s time to explore options that actually work in the real world.

About SellFastDenver.com

SellFastDenver.com exists for homeowners who need to sell, not just those who want to. Our mission is to bring speed, certainty, and flexibility to people facing tough situations like foreclosure, divorce, probate, relocation, and overwhelming repairs.

By combining local knowledge with creative finance strategies, we provide clear options and fast results — so you can stop worrying and start fresh.

Learn more at www.SellFastDenver.com.