Ways to structure Subject To deals with your PML

[Teresa M.]

Ok, so I've never done a subject to deal, so could someone explain it like I'm a super-smart kindergartener? :) lol

What are the contracts needed? 

Who's on the deed? 

Is it quick-claimed to me by the seller? 

How do I get permission to talk to the bank to MAKE SURE what they owe without a red flag?

Is there another way for the PML to be more secure than a 2nd position, as in...can you form an LLC or privacy trust you and your PML own together so we're on the deed together? Or are we on the deed?

Promissory note, yes...but how do we do the insurance as a loss payee? Is it a builder's risk policy they are on?

Anything else I'm missing? PLEASE share what you know and all the creative ways these can be structured! 

Thank you all so much in advance :) 

[Teresa M.]

The subject to I'm attempting is to repair someone's credit in preforeclosure rather than letting the property go back to the bank. So...making up their missed payments, making their payments while we rehab the house, pay it off when we sell it, and pay the seller above and beyond the mortgage amount up to what the property was worth prior to the rehab. This is done all the time. I just wanted to make sure I had the paperwork correct. 

And by the way, the deed is transferred. And, no, that is not illegal.

In our state, it is required to have a builder's risk policy if the rehab is above $30,000 which is also when a GC needs to be involved. This would be $150,000 renovation. 

And, I'm actually not an inexperienced investor. We own one company for rehabs and one for new construction, however, I am not familiar with subject to but wanted to attempt to help someone in a bad position. 

Rather than insinuating, I'm trying to take advantage of someone, it would be far better to either not comment or ask clarifying questions.