Virgin Investor, Subject To, Nebraska - Need Help

[Andrew Brown]

Hope I have a live one here... I'm not sure so I'm asking you all.

I called a seller in my target area today who told me he'll sell his house for what he owes before I even asked.  He bought it almost five years ago for $260k (the NE market has been pretty stable).  He says he put 20% down, owes $195k, but is three months' payments behind.  Company downsizing forced him to take a job out of state. 

He's on a 30 yr fixed mortgage at 4.5%, and said that he's already talked to his lender and they're okay with someone bringing the payments current and taking over the loan. 

There seems to be a decent amount of equity, the financing looks good, and the seller wants out pronto.  Is this a solid base hit for a first deal?

Constructive thoughts and criticism are welcome.  I think I need an "Authorization to Release Information" from his bank and a purchase and sales agreement.  How do I word the purchase price on a Sub-To offer?  How do I best proceed?

[Jared Sveen]

Hey Andrew Brown

What's the plan for the property? Do you want to have it as rental? Personal residence? Flip?

Also, you may want to somehow confirm what the guy is saying about his lender. Most mortgages are not assumable so I would think it's a little suspect that he said the bank would be willing to let anyone step in and start making payments.

Also, area of Nebraska would be helpful for reference.