Jacksonville veteran warns about consequences of ‘sub-to’ mortgage deal

There are currently 11 watches in effect for 11 regions in the area, indicating that residents need to prepare and stay vigilant in the face of potential risks. The subject of “subject-to” mortgage deals has garnered attention, as it has been highlighted as a legal but risky transaction that puts homeowners at financial risk even after transferring ownership of their homes. Stacey Sexton, a Jacksonville homeowner, shared his experience with such a deal, emphasizing the negative consequences he faced after selling his home to BG Investment Group through a subject-to agreement.

Sexton explained that the appeal of the deal was that it offered relief for his upside-down mortgage situation. The process involved transferring the deed to the buyer while the mortgage remained in Sexton’s name, with the buyer making mortgage payments and eventually paying off the loan entirely. However, things took a turn when Sexton received notices from his mortgage company indicating that payments were not being made. Despite the deed being transferred, Sexton found himself responsible for over $35,000 in past-due payments, leading the property towards foreclosure.

As a military veteran, Sexton expressed the additional implications of the situation, including the impact on his credit and his ability to secure future VA loans. The stress and financial burden have taken a toll on him and his family, prompting Sexton to seek accountability from the parties involved. He emphasized his desire to settle his debts and hold those responsible for the situation accountable, even considering pursuing a class-action lawsuit with the help of a local attorney.

Efforts to reach out to BG Ventures for comments on the issue have been unsuccessful, leaving Sexton in a challenging position as he navigates the aftermath of the subject-to agreement. The case serves as a cautionary tale for homeowners considering similar deals, highlighting the importance of thorough research, legal advice, and vigilant oversight to protect against potential risks and financial losses.

In conclusion, Sexton’s story sheds light on the complexities and risks associated with subject-to mortgage agreements, underscoring the need for transparency, accountability, and legal safeguards to protect homeowners from unforeseen consequences. This case serves as a reminder for individuals entering into real estate transactions to exercise caution and seek professional guidance to safeguard their financial interests and homeownership rights.