Tennessee situation guide · Updated November 2026

Wholesaling Subject-To Deals in Tennessee

Wholesaling subject-to deals in Tennessee means contracting to buy a home subject to the seller’s existing mortgage, then assigning that contract to a buyer who will take over the payments. The seller keeps the loan in their name. The new buyer gets a home with a low rate and a small down payment. The risks are real, and Tennessee’s disclosure rules add steps you cannot skip. Read our subject-to guide first if the term is new.

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The short answer

Can you wholesale a subject-to deal in Tennessee?

Yes, you can assign a contract to buy subject to an existing loan, with the written disclosures Tennessee now requires. Talk to a Tennessee attorney before you use this approach with any seller.

A subject-to deal changes who lives in the house and pays the loan. It does not change who owes the lender. The seller stays on the note. If the buyer misses payments, the seller’s credit takes the hit. That is why trust and clear paperwork come first. See our due-on-sale guide for the lender risk.

Under T.C.A. 66-4-403, you disclose in writing, before the contract is signed, that you intend to market your equitable interest. You give the seller notice of the assignment’s effective date at least 3 business days ahead. The disclosures go in bold, large print in the agreement. Our assignment guide covers the form.

Subject-To Deals in Tennessee at a glance

Loan stays in	The seller’s name
Due-on-sale clause	Most loans include one; lenders can call the loan
Wholesaling law	T.C.A. 66-4-401 to -403 (2025)
Seller disclosure	Applies to 1 to 4 unit homes
Foreclosure type	Non-judicial, with published notice
Recordation tax	$0.37 per $100 on the deed

The opportunity

Why subject-to deals appear in Murfreesboro

Rutherford County grew fast as Nashville spread south, and many owners bought or refinanced when rates were low. Some of those owners now need to move for work or cannot keep up with payments. A low-rate loan is hard to replace, so a buyer who can step into it gets real value. Rates and prices change often, so check current numbers on every deal. Our creative financing guide lists the other tools in this family.

Behind on payments

Owners behind on the loan may want to avoid foreclosure. See our pre-foreclosure leads guide.

Moving fast

Job transfers and military moves from nearby bases leave owners who need out in weeks.

Little equity

Owners with thin equity cannot afford an agent and a sale, so terms appeal to them.

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Lead sources

Where to find subject-to leads in Tennessee

Pre-foreclosure notices. Published foreclosure ads list upcoming sales. Our notice of default guide explains the stages.
Motivated sellers. Ask every seller about the loan balance and rate. Use our motivated seller guide.
Expired listings. Homes that did not sell at list price may sell on terms. See expired listings.
Relocating owners. Employers, bases and schools near Murfreesboro create sellers on a deadline.
Referrals. Mortgage brokers and attorneys meet owners who cannot refinance or sell at a gain.

Your exit

Who buys subject-to deals in Tennessee

Buyers who want a low rate and cannot or will not use a bank are the usual fit. Some are owner-occupants and some are landlords. Be clear with every buyer that the loan stays in the seller’s name and that the lender could call it.

Many deals use a servicing company to collect the payment and pay the lender. That gives the seller proof that the loan stays current. Ask your title company how it records and insures these closings.

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Step by step

How to start wholesaling subject-to deals in Tennessee

Learn the loan. Get the balance, rate, payment, taxes and insurance, and any arrears.
Ask about the lender. Explain the due-on-sale risk to the seller in plain words.
Run the numbers. Use the ARV calculator and the MAO calculator.
Write the contract. Add the bold disclosures about marketing your equitable interest.
Market the deal. Show buyers the payment, the equity gap and the risk.
Give notice. Tell the seller the assignment date at least 3 business days before it takes effect.
Close and monitor. Set up payment monitoring, keep insurance in place and keep records.

Your checklist for wholesaling Subject-To Deals in Tennessee

Get a signed authorization to talk to the lender.
Put every risk in plain words in the contract.
Keep homeowner insurance in force with the right named parties.
Set up payment monitoring from day one.
Have a Tennessee attorney review the deal.

A Tennessee example: a Murfreesboro owner with a 3.1% loan

Purchase price	$315,000
Loan balance	$268,000 at 3.1%
Seller cash needed	$12,000
Buyer price	$327,000
Assignment fee	$9,500
Monthly payment	About $1,610 with taxes and insurance

A Rutherford County nurse took a job in another state and had 30 days to move. Her house was worth about $315,000, and her old loan carried a 3.1% rate. A sale would cost her agent fees and a long wait.

You agreed to take the house subject to the loan and to cover $12,000 for her moving costs. The contract held your bold written disclosure that you might assign it. You explained that the lender could call the loan.

A buyer who wanted the low rate agreed to the assignment. The seller got her 3 business day notice, and a servicer started paying the lender. You earned $9,500. Numbers here are only an example.

Tennessee rules to know

Disclosure, licensing and lender risk

Tennessee’s wholesaling statute requires written, bold, large-print disclosures in the agreement. A claim must be brought within 2 years of contract execution. The enacted text does not state a cancellation right or a penalty. Check the current text before you act.

Sellers of 1 to 4 unit homes generally must give a disclosure statement or a disclaimer, and the disclaimer works only if the buyer waives the disclosure. Unlicensed brokerage is barred by T.C.A. 62-13-301. Lender rules on loan transfers, and any federal lending rules for owner-occupant buyers, are not covered here. Get advice from an attorney.

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Structure the deal safely

Subject-to deals fail on weak paperwork and thin trust. Our students send us their disclosure language and we help them tighten it.

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FAQ

Subject-To Deals in Tennessee: common questions

Is wholesaling subject-to deals in Tennessee legal?

It can be, when you follow T.C.A. 66-4-401 to -403 and use proper paperwork. Lenders can still call the loan, so get legal advice. The seller stays on the note, so you disclose in writing, before the contract is signed, that you intend to market your equitable interest.

What is a due-on-sale clause?

It lets a lender demand the full balance when the property is transferred. Most mortgages include one. Lenders can call the loan, so explain that risk to the seller and your buyer in writing, and ask an attorney how it affects your plan.

Does the seller stay on the loan?

Yes. The loan stays in the seller’s name, and the seller’s credit is exposed if payments stop. A subject-to deal changes who lives in the house and pays the loan, but it does not change who owes the lender, so trust and clear paperwork come first.

Do I need a license?

Not as a principal buyer who does not broker for pay, but the unlicensed brokerage law is strict. Ask an attorney. T.C.A. 62-13-301 bars unlicensed brokerage, so market your contract, not the house, and keep your disclosures in bold, large print in the agreement.

What if the seller is in foreclosure?

Tennessee foreclosure is non-judicial with published notice, so timing is tight. Move fast and verify the sale date. Owners behind on the loan may want to avoid foreclosure, so confirm the notice dates before you promise anything, and have an attorney review the structure.