Buying and assuming a mortgage off-MLS

[Chris H.]

Hello,

I found a property an investor who has since moved out of town listed on Craigslist. After speaking with the owner, he was willing to sell it at a price quite a bit below comparables if cash (or cash plus willing to assume the remaining 25k loan).

The sale would be done with a quit claim deed and he'd want the equivalent of one month's rent as earnest money. He said the easiest way is to just write him a check for the earnest money. This makes me nervous.

He had his son (still in town) show me the place (he arranged a few simultaneous showings, I wasn't the only one) and it definitely needs work, but from what I can tell, mostly superficial. Roof's good, saw no signs of mold, just lots of drywall work and cleanup of filthy tenants.

Only problem? It's currently occupied, on a month to month basis. He says he can get the tenants out very quickly, 20 days, though he'll give them 30 since they've been good tenants.

I am willing to buy it, but only contingent on the renters being evicted and also a home inspection.

I've never done this before without a realtor holding my hand. How would I go about it? I'm tempted to go ask my past realtor (who I have a good relationship with) if she'd be willing to help me with the contract for a flat fee, but can she write a contract with "assume the mortgage" in it, and who holds the earnest money?