Modification to Loan Since Seller Is 3 Weeks From Forclosure

[Kenneth Picha]

Hi,

I am considering taking on the current loan from a buyer whose rental home is about to be foreclosed on.  He declared bankruptcy about a year ago and the deal with the bank was to have the rental home rented or they would reposes it.  He has not make any payments since the renters left which was just under a year ago and he owes for this years taxes.  

I spoke to the Lender and they would be willing to modify the loan so I could assume the mortgage.  The amount I would assume is just under $190,000 and the homes in this area for that size rent from $2100 to $2300.  The roof is new and I need to get in on the inside to determine its state.  Homes in this area for that size are about $220,000 to $240,000. I am not expecting much as it was rented just under a year ago. I did a search on the county website and the records are correct so far.   I would still have a title check run to make sure their are no Liens on the home etc.

 I have until mid-July for the modification paperwork to occur and my view is making an offer direct with the bank and see what they say.  I know I would have to have the seller protected from the bank going after them for the rest of the loan.

What are the thoughts/advice on me doing this kind of transaction with the bank and even offering the bank $150,000 with the same terms?  

Ken