M. & D. Chen: subject-to on a Tampa bungalow

Margaret and David Chen had been shopping Tampa for a year. They'd flown down four times. They had ITINs, cross-border financing pre-approval, and a price band ($350K–$425K). Then their cross-border mortgage broker quoted them 7.85% on a non-resident purchase loan. Their math stopped working at 7.85%.

A friend in Hyde Park mentioned subject-to. Three weeks later they were under contract on a 1996 bungalow on W Swann Ave with a 3.125% mortgage assumed from the seller.

How it came together

The seller had originated her mortgage in early 2021 — 30-year fixed at 3.125%, original balance $292K. By the time she listed, the balance was down to $278K. She'd married a Brit and was moving to London. She didn't need cash at close; she needed to be free of the carrying cost without taking a 2025-market hit.

Subject-to was the structure that worked for both sides. The Chens took title; she kept the mortgage in her name; they continue her payments. She got two extra perks: she didn't pay agent commission on the buyer side, and she got Re-lo's performance mortgage as belt-and-suspenders protection on her credit.

The Chens brought:

• 15% of the agreed $389K price ($58K) for the seller's equity
• $4K for title insurance + closing costs
• $1.5K for new insurance policy in their names
• $850 to Re-lo's attorney for the trust paperwork

Total cash out: ~$64K. Compared to a conventional purchase, this is broadly similar to a 20% down conventional — except they got a 3.125% rate instead of 7.85% and didn't have to qualify.

What they're paying

• P&I: $1,191/mo (the seller's original mortgage payment)
• Tax: $326/mo (escrowed)
• Insurance: $204/mo (their new policy)
• Total monthly carry: $1,721

At 7.85% on a $331K loan (the conventional alternative), their monthly P&I alone would have been $2,398 — $1,200/mo more than what they're actually paying.

What surprised them

They underestimated how strange it would feel for the mortgage statement to arrive in someone else's name. The third-party loan servicer (we use a Florida-licensed servicer to keep both sides clean) handles statement forwarding, ACH from the buyer's U.S. account, and IRS Form 1098 mortgage-interest reporting. It works — but the first month felt weird.

They also didn't anticipate how easy the close was. No appraisal contingency tied to a new loan. No lender underwriting. No conditions list. The hardest part was scheduling the in-person notary signing while they were still in Toronto.

What they wish they'd done differently

"Pay for the consult with a cross-border tax advisor earlier," Margaret said. "Not later. We almost missed the T1135 deadline that first year because nobody told us."

We've since added a "cross-border tax advisor" recommendation directly into the relocation checklist for every Canadian Re-lo user.

The Chens close on their second Tampa property next month — same structure, different neighborhood. They're building a portfolio now.