Critical risk
A deed transfer does not automatically remove you from the mortgage. Missed payments can affect your credit. Lenders may have due-on-sale rights. Do not assume a trust or creative paperwork eliminates those risks.
How it differs from assumption
An assumption typically requires lender approval and buyer qualification. Subject-to arrangements are different and carry distinct legal and financial exposure.
Questions to resolve before considering it
- Will you remain liable on the note?
- How are taxes, insurance, and servicing handled?
- What protections exist if payments are missed?
- What does your loan’s due-on-sale clause allow?