Do I have a possible Subject to deal in the works?

[Rich Hupper]

Hello Bp

I found a distressed landlord who purchased a 2 family in 08' for 217k. We was an absentee owner and as a result his tenants stopped paying rent.

He told me his current loan pay off is 270k. The property is in pre foreclosure. The tenants are still there and have not paid rent in years. ARV for the property is 340k.

The owner says he would be interested in discussing a subject to deal and would be willing to walk away not making any money on it.   I have never done a subject to deal  and do not know the steps involved.

I am not sure when the last time he made a loan payment. ( i am guessing I need to find this out )

If he has not paid his loan in a long and I start sending his mortgage company checks will the foreclosure process be halted?

How soon after I have title to the property and do the necessary repairs could I look for a new loan? 

Now that I know he is interested in doing this and I believe there is equity in the property. What is the next step?