Possible "Subject To" Opportunity- Newbie needs some sound advice please

[Jerilyn D.]

Hi fellow BP members! First of all, a BIG thank you to all of you who are active on the forums. I have learned so much from reading the wealth of information that you provide. It means so much to a newbie like me. Thank you!

Ok, so I'll try to keep this short and concise. I stumbled across what I believe to be an opportunity, and would be so grateful for any and all thoughts/concerns.

I have an acquaintance who is facing foreclosure. She is 2 months behind on her mortgage, going through a divorce, and wants to walk away from her property and move on with her life. She has already relocated. The subject property is vacant. There is essentially no equity in the property. She owes 120k. The property would sell for approximately 125-130k ( fixed up). The property needs approximately 10k in rehab work. The existing loan is a 30 year fixed at 3.875%. The monthly payment including taxes and insurance is $808.00.

I am thinking that this may be an opportunity for my husband and I to purchase " subject to" the existing loan. It could benefit the seller by saving her credit, and benefit my hubby and I by allowing us to purchase without a significant amount of money down ( just catching the loan up and paying the late fees, etc.), and we would not have to go out and get a loan.

I have several questions: 

1) Does this make any sense at all?

2) I think this particular property would rent for approximately $1100/ month. Is purchasing " subject to" a poor strategy when it comes to buy and holds?

3) If the due on sale was executed, is there typically enough time given for my hubby and I to go out and get a loan? ( we both have good credit). I wouldn't want to hurt the seller in any way. What are my options if the DOS is initiated?

4) If the loan is in the sellers name, at what point can we eventually put a loan in our name and alleviate the seller of any responsibility?

5) If buy and hold is a poor strategy for this property, is there any other ways that I can make some money on this while creating a win-win for all parties involved?

I appreciate any feedback very very much! I am very new to this, and am trying to cover all of my bases before I make too many mistakes.  : )