How to buy homes worth less than mortgage

[Christopher Lombardi]

I’m wondering if anyone has used any creative techniques with regards to buying a home worth less than the mortgage owed. The one in particular that I like is on its way to auction but I would love to try to work something out ahead of time. I know you can negotiate a short sale but has anyone ever been able to negotiate other creative terms with a bank?

[Bill Plymouth]

@Christopher Lombardi I know a guy who buys underwater property "subject to". From what I understand, which honestly isn't much about the strategy, is that the mortgage is transferred to your name and you assume the payments. There was a situation where he assumed the mortgages of 6 properties payed off like 7k in back taxes, and "purchased" the LLC containing the properties for a dollar.

@Brett Goldsmith you seem you may know more about these types of purchases.  Would “subject to” be a viable option in the OP’s case?