Three structures sellers hear about when a straight cash sale is not the fit: seller financing makes you the bank, subject-to leaves your mortgage in place while the buyer pays it, and a novation replaces your contract entirely. What each one actually does, and what each one risks.
By InTym Properties
When a seller hears "sell fast for cash" and it does not fit, the next suggestions are usually three structures: seller financing, subject-to, or a novation. All three are legal, all three are real tools, and all three get explained badly more often than well. Here is what each one actually does to your money, your liability, and your timeline, and when each beats a straightforward cash sale.
This is orientation, not legal or tax advice. Any of these structures deserves a Florida real estate attorney's eyes before you sign, and a CPA's on the tax side.
In a seller-financed deal there is no lender because you are the lender. At closing, title transfers to the buyer, and the buyer signs a promissory note secured by a mortgage back to you. They pay you monthly, with interest, until the note is satisfied.
What you get: a higher total price than a cash offer typically pays (you are being compensated for providing the financing), monthly payments, and interest on top of principal. Sellers with no mortgage of their own and no urgent need for the full proceeds are the natural fit.
What you carry: default risk. If the buyer stops paying, you foreclose on your own former property, which in Florida means the judicial process and its months-long timeline, covered in the foreclosure timeline post. You also carry servicing duties unless you hire a servicer, and the note's tax treatment (installment sale reporting) is a CPA conversation, not a blog-post answer.
In a subject-to deal the buyer takes title while your existing mortgage stays in place and in your name. The buyer agrees to make the payments; your loan is never formally assumed or paid off.
What you get: a way out when the numbers would not otherwise work, particularly when the loan balance is close to the value and there is no equity for a payoff, or when your rate is low enough that a buyer will pay for the privilege of your financing.
What you carry: the largest risk on this page. The note stays in your name, so a buyer who stops paying damages your credit, not theirs, and you no longer own the collateral. Most mortgages also carry a due-on-sale clause that lets the lender accelerate the loan at transfer. Lenders do not always enforce it, but "usually does not happen" is not the same as "cannot happen." A subject-to should never be signed without an attorney structuring the protections.
A novation substitutes a new contract for the old one, with all parties' consent. In investor deals it typically means your purchase agreement is replaced by one between you and a different end buyer, or the deal is restructured so the property can be marketed with revised terms.
What you get: occasionally a higher price than a straight assignment, because the end buyer can be brought into the deal openly rather than behind an assignment clause.
What you carry: the fine print. A novation is a new contract, and new contracts can move the price, the closing date, the contingencies, or who is actually obligated to close. Read the replacement contract the way you would read the first one, and compare every number to what you originally agreed.
A cash sale gives you the lowest total price and the highest certainty: the entity signs, the title company closes, you are done in weeks. Seller financing gives you the highest potential total and converts your equity into a note that pays monthly, with default risk attached. Subject-to solves the no-equity or low-rate problem while leaving your credit exposed to a mortgage you no longer control. A novation is a mechanism, not a strategy: it is only as good as the new contract it produces.
Sellers who get hurt in creative structures almost always share one feature: they signed paperwork they did not fully read, from a counterparty who discouraged independent review. Whatever structure you pick, an attorney who represents only you should read it. On a direct cash sale with InTym Properties there is no structure to review at all: a written offer, your closing date, a licensed title company, and the number you agreed on. The we buy houses page shows that process end to end.
Seller financing, subject-to, and novation are tools for sellers who can trade time or risk for a better number. If you have no mortgage, no deadline, and appetite to hold a lien, seller financing can beat cash. If your loan is the problem, subject-to exists but prices your credit as collateral. If certainty and a clean exit are what you need, the cash sale is the instrument built for exactly that.
Want to compare a straight cash offer against a structured option on the same property? Call or text (650) 540-1854. InTym Properties will tell you when a different structure, or a listing, would net you more.
You act as the lender: instead of getting cash at closing, the buyer signs a promissory note and mortgage to you and pays you monthly until the note is paid off. You keep a lien on the property as security. It can net more over time, but you carry the risk of the buyer defaulting.
The buyer takes title subject to your existing mortgage staying in place. Your loan is not paid off: the buyer takes over payments but the note stays in your name. The risk is real: most mortgages have a due-on-sale clause the lender can enforce, and if the buyer stops paying, the default lands on your credit.
A novation replaces the original contract with a new one between the buyer and a different end purchaser or between you and a restructured deal. In the investor context it usually means the contract gets reworked so an end buyer steps in with revised terms. Read carefully: a novation can quietly change the price or timeline you agreed to.
When you do not need the proceeds now and want income plus a higher total price: seller-financed deals often price above a cash offer because you are providing the financing. It fits sellers with no mortgage of their own, no urgent move, and comfort holding a lien. If you need certainty and speed, the cash sale wins.
Your name stays on the mortgage. If the buyer stops paying, the missed payments report on your credit and the lender can still foreclose on a property you no longer own. The due-on-sale clause lets the lender call the full loan at transfer, though enforcement varies. An attorney should review any subject-to structure before you sign.
They change them rather than remove them. Seller financing still involves a note, mortgage, and title work; subject-to still needs title and insurance handling. The difference is who pays and when, not whether the paperwork exists.
Written offer usually within 48 hours, signed by InTym Properties, every number shown. No repairs, no fees, no obligation.
The scams follow patterns: bait-and-switch offers, fake proof of funds, hidden assignment clauses, upfront fees. Six checks that verify any cash buyer without trusting them, run against InTym Properties too.
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