"Subject to" help

[Michael Madill]

I am looking at a posible "subject to" deal. This investor is in preforclosure on a house that also as tentants in it with a lease option. The house was just listed on the MLS as preforclosure short sale.

I contacted the investor about possibly doing a subject to deal and she said that she wanted to ask her husband about it before going over the numbers (balance on mortgage, type of financing they have, PITI etc.)

I have a couple of questions about this. My understanding on subject to deals is that when the property is sold the seller gets a pre set dollar amount on the equity, does that sound about right?

Well this house is listed for about what current market value is, maybe even a little higher but not much. So I was thinking of just asking to take over the mortgage payments, put title in escrow and thats it. No money to them since there is no equity at this time. Does that sound fare to them or am off the charts here? Just figured by possibly getting them out of forclosure, that should be a good enough incentive.

This house is only a year old and was purchased at 230,000, listed for 149,900 as a short sale. I think the mortgage balance is around 160,000 not sure though, will have to confirm that first i know.

I don't want a loan on my credit hence the reason for attempting a subject to. Plus I shouldn't have to look for a lease option since that is established, or is it? If this were to go through, is the lease option voided or can i have that put in my name?

Did any of this make sence?

Thanks for listening!