Pre-forclosures and Subject-To In Arizona

[Michael Page]

Hello! I'm a newbie trying to get my first deal. I am looking in the Phoenix, AZ area. I've researched Subject-To financing and am considering how to setup a pipeline for acquiring single family homes this way. I want to keep the properties as long term rentals.

Researching pre-forclosure leads I came across this document from the Attorney General. On page 34 in the section about scams the "Lease or Buy-Back" and "Equity Stripping" descriptions are a little concerning. Obviously I want to buy properties fairly and legally but this sounds like using subject-to for pre-forclosures is generally perceived as illegitimate in Arizona. Anyone have insights on this? I plan on having full disclosures and release of liability agreements in any paperwork for the deal but is that enough? Any recommendations on pursuing pre-forclosures without being branded a "scammer"? Thanks!

[Account Closed]

Quote from @Michael Page:

Hello! I'm a newbie trying to get my first deal. I am looking in the Phoenix, AZ area. I've researched Subject-To financing and am considering how to setup a pipeline for acquiring single family homes this way. I want to keep the properties as long term rentals.

Researching pre-forclosure leads I came across this document from the Attorney General. On page 34 in the section about scams the "Lease or Buy-Back" and "Equity Stripping" descriptions are a little concerning. Obviously I want to buy properties fairly and legally but this sounds like using subject-to for pre-forclosures is generally perceived as illegitimate in Arizona. Anyone have insights on this? I plan on having full disclosures and release of liability agreements in any paperwork for the deal but is that enough? Any recommendations on pursuing pre-forclosures without being branded a "scammer"? Thanks!

Yes, there are very real concerns about buying foreclosures using Subject To or using any other technique.

It isn't something I would do without working with someone who really understands what they are doing. After you get a few under your belt, you will probably have enough knowledge and experience to proceed on your own. There is  lot of nuance.

You can see some of the things NOT to do at 

https://www.biggerpockets.com/...

Check items 6 and 7 and 8 and 9 specifically.