Click here for all Addressing A4dability coverage.<\/a><\/p>\nBut a News4JAX I-TEAM investigation found that a type of real estate transaction known as a \u201csubject-to\u201d mortgage deal can carry serious financial risks, including foreclosure, damaged credit and costly legal battles.<\/p>\n
In a subject-to deal, a homeowner signs over the deed to a buyer, who promises to make the mortgage payments. The key difference from a traditional sale is that the mortgage stays in the original homeowner\u2019s name.<\/p>\n
Subject-to transactions are legal and, in some cases, can offer a way out for seller\u2019s upside down on their home loans. But court records and interviews reveal that when buyers stop making payments, the consequences fall squarely on the seller.<\/p>\n
The I-TEAM identified dozens of foreclosure filings and multiple lawsuits tied to one company operating in Northeast Florida and beyond – BG Ventures Investment Real Estate, also known as BG Investment Group.<\/p>\n
Missed payments, mounting foreclosures<\/p>\n
The investigation began with a voicemail tip about BG Investments offering to buy homes in the Jacksonville area.<\/p>\n
\u201cThey offer to take over the payments, pay the loan current and eventually purchase the home,\u201d the tipster said. \u201cBut what happens is they get into the contract, then they ghost the buyer, and then the home goes into foreclosure.\u201d<\/p>\n
Court records show tens of thousands of dollars in missed mortgage payments and at least 29 foreclosure lawsuits connected to properties involved in subject-to deals with BG Ventures. Most of the cases are still working their way through the courts, but at least one home is headed to a foreclosure auction.<\/p>\n
One homeowner who contacted the I-TEAM said the situation has already cost him his home.<\/p>\n
\u201cI\u2019m in this situation,\u201d the tipster said. \u201cI\u2019ve been in contact with an attorney; this will cost up to $10,000.\u201d<\/p>\n
A local real estate agent who worked with BG Ventures, and asked to remain anonymous, said he was involved in about 60 transactions with BG Ventures, believing he was helping sellers whose homes were not selling through traditional means.<\/p>\n
\u201cThe intention was only to help sellers and provide an actual solution,\u201d he said. <\/p>\n
The agent represented BG Ventures in transactions across Jacksonville and other Florida cities. Their relationship began after BG submitted an offer on one of his listings.<\/p>\n
\u201cOne of my listings had an offer from BG saying they would take over the payments,\u201d the agent said. \u201cI was like \u2018How does that work?\u2019 And then he\u2019s like \u2018Oh we take over payments subject-to the mortgage staying in place.\u2019\u201d<\/p>\n
How \u2018subject-to\u2019 deals work<\/p>\n
In a typical subject-to transaction, the homeowner signs over the deed while the mortgage remains in their name. The buyer takes control of the property and promises to make the monthly payments.<\/p>\n
According to court filings and interviews, BG Ventures planned to convert many of the homes into PadSplit-style rentals \u2014 leasing individual rooms separately to generate higher cash flow.<\/p>\n
Private money lenders, not banks, funded many of the deals. Those investors were allegedly promised returns of 15% to 20%, far higher than traditional investments.<\/p>\n
But those lenders were often placed in second-lien positions, meaning they only get paid after the original mortgage. If payments stop and the property goes into foreclosure, investors may lose their money and homeowners remain legally responsible for the first mortgage.<\/p>\n
\u2018Everything just seemed good\u2019<\/p>\n
Jose Landeros and Christian Mendez sold their Duval County home to BG Ventures through a subject-to deal after struggling with an upside-down mortgage.<\/p>\n
\u201cWe were like, OK, this seems like a pretty good deal,\u201d Landeros said.<\/p>\n
\u201cThey were making this deal on like an upside-down kind of purchase. But we got money out of it, so that seemed great,\u201d Mendez said, referring to the $13,000 they received in cash at closing as part of the deal. \u201cThey explained that they would be renting it by the room. So you rent each room for $1,000, and that\u2019s more than what the mortgage is. So, then they\u2019re kind of making it up in that way. <\/p>\n
They were told they could stop making mortgage payments and that the home would be rented by the room.<\/p>\n
\u201cEverything just seemed good,\u201d Landeros said.<\/p>\n
But after a few missed mortgage payments, things began to unravel.<\/p>\n
\u201cThat\u2019s when it started clicking, something\u2019s wrong,\u201d he said.<\/p>\n
The couple said they don\u2019t believe anyone ever moved into the home after they left. Neighbors reported no renters, and they continued receiving HOA violation notices for overgrown grass.<\/p>\n
Lawsuit alleges fraud<\/p>\n
In Bay County, retired military servicemember Jonathan Pressly said he felt pressured to sell his Panama City home quickly while transitioning out of active duty.<\/p>\n
\u201cI didn\u2019t have another job completely lined up. I needed to get this house off of me right now,\u201d Pressly said.<\/p>\n
Pressly is suing BG Ventures Investment Real Estate, LLC, alleging the company fraudulently induced him into transferring ownership through a subject-to deal.<\/p>\n
\u201cThey made zero payments,\u201d Pressly said. \u201cNo attempt to make a payment.\u201d<\/p>\n
Pressly said he is still paying the mortgage on a home he no longer owns because a foreclosure could cost him his military security clearance and his job.<\/p>\n
\u201cI felt like I was doomed,\u201d he said. \u201cIt\u2019s an absolutely horrible situation. I feel like, you know, if they had an opportunity, they\u2019re gonna do it again.\u201d<\/p>\n
Calls for caution<\/p>\n
The I-TEAM found properties linked to the cases listed for rent online, but repeated attempts to reach BG Ventures for comment were unsuccessful.<\/p>\n
The anonymous agent said he now feels deeply responsible for sellers caught in foreclosure.<\/p>\n
\u201cI feel so horrible,\u201d he said. \u201cThere are private money lenders trying to get their money back and also get the assets back.\u201d<\/p>\n
According to interviews and legal filings, the business model depended on rental income and investor funding to cover mortgages. When that system broke down, homeowners were left facing foreclosure and investors faced steep losses.<\/p>\n
In a statement, a representative for PadSplit said, \u201cBecause PadSplit is supporting litigation with parties affected by this matter, we are unable to comment.\u201d The company did not say whether BG Investment Group was an approved operator.<\/p>\n
Advice for Consumers<\/p>\n
Consumer advocates warn homeowners to seek legal advice before entering subject-to agreements and to fully understand that, even after signing over a deed, the mortgage, and the risk, may still be theirs.<\/p>\n
Attorneys suggest that home sellers considering a subject-to mortgage deal place their deed in a trust. If the loan defaults, the deed reverts back to the seller in most cases.<\/p>\n
Sellers can also protect themselves by adding contract clauses that delay transferring the deed until the buyer has made a set number of on-time mortgage payments.<\/p>\n
Copyright 2026 by WJXT News4JAX – All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"JACKSONVILLE, Fla. \u2013 It can sound like a lifeline for homeowners struggling to sell a house with little…\n","protected":false},"author":2,"featured_media":136437,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[15852,15851,10316,116,118,117],"class_list":{"0":"post-136436","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-jacksonville","8":"tag-addressing-a4dability","9":"tag-addressing-affordability","10":"tag-i-team","11":"tag-jacksonville","12":"tag-jacksonville-headlines","13":"tag-jacksonville-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/136436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/comments?post=136436"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/136436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media\/136437"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media?parent=136436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/categories?post=136436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/tags?post=136436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}