Subject 2 - stopping foreclosure and transferring deed

[Kimberly Marie]

Hi all,

This is definitely a newbie "subject to" question, or questions, but here it goes...

Found out my neighbor is two weeks from his home being sent to auction. I have secured conventional financing but that won't help within the next two weeks. 

The only option I see is a subject to deal, which I only learned of about a week ago. I won't pay off his arrears and get him current if it's not going to guarantee me home ownership. He's open to all of this with transferring the deed, by the way, although we do not have a document between us yet. 

Neighbor/seller has given me authorization to speak to his bank, so I know what it'll take to reinstate his loan. It's beyond negotiation with bank at this point, from what I'm told. Too close to auction and into the foreclosure process. I have about 10 days to make this a win-win.

He's a year behind on taxes and I know he is behind on HOA dues, so I'm already figuring that in.

Despite all the info out there, I'm still feeling stuck on next steps and am having trouble finding someone locally who is well-versed in this. There's the what, but now the HOW?

1. What edits are needed in a offer to purchase/purchase agreement?

2. How to transfer warranty deed?

3. Do I need a limited power of attorney?

4. Do I notify the insurance company after the fact?

5. Do I notify the mortgage company?

6. If I have all my docs, can I just work with a closing attorney or what is best?

7. What other docs do I need?

I know that attorney Bill Bronchek has the contract and all the disclosures I would need for Tennessee. If I purchased that from him, I'm still not clear how to finalize.

I have two other properties, but I worked with a realtor and have conventional loans on both. This is all new. Thanks in advance for any insights or guidance!

Kimberly 

[Wayne Brooks]

@Account Closed

Ah, you caught me....

The OP seems to have the ability to refi if need be and also cover vacancies.....as opposed to the oft promoted idea of buying sub2 because someone has Neither the ability to finance the property, Nor money for a normal down payment, and even advised to Then turn around and “owner finance” it, or resell sub2 again, to someone Else who doesn’t qualify for a loan.....a recipe for disaster for the original seller.