Subject-to's and foreclosure

[Shvonne C.]

I want to see if the scenario in my head makes practical sense. I'm in Connecticut but any advice or feedback is appreciated.

If someone is in the foreclosure process, could I purchase their home subject to the existing financing? I know I'd have to pay whatever the bank would require to get it out of foreclosure, then beyond that take over the payments on their existing mortgage using a 3rd party to handle any payments that may need to be split.

I think I'm simplifying here since we'd also have questions about insurance, taxes, etc... However, for the sake of just purchasing the home - can/should that be done?

[Hattie Dizmond]

@Shvonne C. Lenders can call a note due.  It is their legal right to do so, and no one can guarantee you that won't happen.  You have to ensure your seller is fully informed and has signed informed consent documents.  With that said, lenders typically don't want to turn performing assets into non-performing assets.  They don't want to own property.  They already own hundreds of millions of dollars in properties they are trying to liquidate.  It isn't their business model.  There are plenty of folks on this site who have done hundreds of subject to deals without ever having one called.