How can Neighborhood Heroes help me?
Our primary focus is to help homeowners find the best solution for their particular situation. In some cases this means we consult with the homeowner at zero cost to provide our feedback and expertise. Depending on the circumstances we will help explore all possible options, this could mean suggesting the homeowner looks for a personal loan, listing the home with a real estate agent, refinance their mortgage (loan modification), rent the home, or several other options.
If none of these options work, Neighborhood Heroes may be able to purchase the home directly from the seller on terms that work for all parties. We can work on the homeowner’s timeline and can close in as little as 5 business days.
How can I submit information to receive an offer from Neighborhood Heroes?
Please fill out the following form: click here
What should I expect after submitting my information?
Someone from the Neighborhood Heroes team will contact you within 24 hours to discuss the options of our offer.
How soon can Neighborhood Heroes close?
We can close on a transaction in anywhere from 5 days to 30 days on average. This all depends on the seller’s needs and our ability to work with the seller to determine the best closing date for their situation.
What is “subject to”
A “subject-to” transaction involves acquiring a property and taking over the existing mortgage, effectively assuming the responsibilities of the current mortgage. The original mortgage remains in the seller’s name untouched.
In a “subject to” who makes the payments to the lender?
For the sake of simplicity and to make these transactions as effortless as possible for the homeowner, we pay the lender directly and can provide monthly statements showing our timely payments or we can use a third-party loan servicer for this task.
How will my debt-to-income ratio affect my eligibility for a new loan when I’m ready to apply if I sell my home subject to?
If a borrower is responsible for a mortgage debt but not the one making the repayments, the lender can choose not to count the total monthly housing cost (PITIA) as part of the borrower’s monthly recurring debts under certain conditions:
- 1. The individual making the payments is also legally responsible for the mortgage debt,
- 2. There have been no late payments in the last 12 months, and
- 3. The borrower is not relying on rental income from the property in question to qualify for the loan.
To remove non-mortgage or mortgage debts from a borrower’s debt-to-income (DTI) ratio, the lender needs to collect the last 12 months of cancelled checks or bank statements from the party responsible for making the payments. This documentation must show a history of 12 months’ payments without any late payments.
Some lenders will remove a portion of the DTI within the first 6 months if the same supporting documents can be provided to them. In our experience, this is entirely based on the lender. Neighborhood Heroes can provide referrals to lenders that work with buyers that currently own multiple properties or have sold a home “subject to.”
Fannie Mae website, scroll down to “Debt Paid by Others” section:
Does the IRS recognize “subject to” sales?
Subject to is mentioned on HUD statements on lines 203 and 503. Although “subject to” has been used in the U.S. for well over 50 years, many real estate professionals are not familiar with it.
IRS Publication, search for “subject to”:
Some lenders will remove a portion of the DTI within the first 6 months if the same supporting documents can be provided to them. In our experience, this is entirely based on the lender. Neighborhood Heroes can provide referrals to lenders that work with buyers that currently own multiple properties or have sold a home “subject to.”
IRS Publication, search for “subject to”: