Subject To opportunity...with possible entanglements

[JJ Neerman]

Evening, BP Fam!

I'm looking to buy a specific property using "subject to". if we get to a contract, we'll close it, get a warranty deed, a power of attorney from the seller to me for the property, and by snail mail will notify the seller's lender. so far so good? yes, no, maybe so? please advise.

NOW, here's the rub...the seller filed chapter 13 early in 2017 to save the house. in February of this year it was dismissed. On top of that, his most recent tenant abandoned the property about a month ago after having not paid rent for about four months (4-mos.). SO, add to this mix the potential for the house to fall into foreclosure. the seller is willing to let it go to FC; however, will consider my "subject to" deal.

The seller owes about $132k and the house county tax record appraisal is $159k, with comps in the area ranging between $150k and $175k. 

Q: is "subject to" reasonable since the property currently is not officially in foreclosure? what assurance should i ask/look for to make this deal possible/ reasonable? 

thanks in advance for your consideration and feedback!

[Asury Johnson]

@JJ Neerman how far behind in payments? What condition is the home in? Is he fronting any money? Will there be any ahead after being caught back up in payments and repairs and holding costs? If not, I'd negotiate for him to lessen some of that cost, even if it's with a promissory note. We have done over 30 subject to deals and sometimes you have to get creative.