Steps in a Subject To

[Mark J.]

I did a direct marketing campaign awhile back and one of the responses I received was from a seller wanting to get rid of the mortgage/debt.  She doesn't live in the property and it's been sitting vacant for the last year or so.  She tried to sell it but couldn't- think maybe due to a combination of bad agent and price/condition.

It probably needs about 10K to make it nice.  She owes 90K.  I'm thinking it could rent for $1100-$1200/month, which if I don't have to put the 20K down payment would make a lot of sense.

I'd like to approach the seller with a "subject to" offer, taking over the mortgage, fixing it up and renting it out.  Possibly selling it in a couple of years.

How would I go about it?  Do I need to get an agent to write an official offer and do the legal paperwork?  From what I've read I would/should get an inspection to make sure there aren't any major issues.

Would I hire a title agency firm to handle the transaction like a regular purchase (this is PA)?

Does this make sense as a financial deal or am I overlooking something(s)?

Thanks in advance for any input.