Subject To assistance needed

[Jodi-Ann Birch]

Good day, 

I am relatively new to REI and I have a potential subject to deal I am looking at in Cleveland Suburbs and could use some help. The loan payoff is $47,000.00 with 14k past due. The rental potential and areas would allow me to cash flow when all other expenses are added. I am not sure about the process I should be following or where to ask for help so I am asking here?

1. I am only looking to take over the existing payments and not the back payment. Is this the right approach? Or do I pay the past due and then start making payments on the existing loan? is this the best subject to approach?

2. I will need to make sure the bank is not looking to foreclose or take the home given the past-due amount stated above?

3. Do I need to verify the existing loan amount at or before closing?

4. I am looking to verify the mortgage type (fixed or ARM). ARM is not the preference esp if the rate is about to adjust or would result in a loss of cash flow potential. Is this approach ok?

5. Should I use a title company for this as well? 

6. Do I get insurance in my name or let it stay in the owner's name?

7. How would I know if the bank has a Due on-sale clause?

8. How do I know to keep abreast of any key communications related to the home esp from the bank if the loan will not be in my name? Does it matter?

8a. Should I utilize an authorization to release information form and where would I go to find these or get help?