ASSUMING A DECEDENT’S VA LOAN THROUGH (ADULT) CHILD BENEFICIARY.

[Nicholas Lawson]

BP community – Hello, this is my first post.

I currently have a prospective deal on a SFH financed with a VA loan in the Coachella Valley of Southern California. The deceased was a veteran who had placed the property into a Revocable Living Trust. The deceased's child is the Trustee of the Trust and the Beneficiary of the home. The loan is several months behind in payments and will go into foreclosure soon if it is not brought current. The beneficiary wants to make a deal with me to take over the property. My objective is to bring the mortgage current, pay the Beneficiary a fee, and then turn around and sell the home to a traditional buyer.

I am seeking advice as to how this deal would best be structured from beginning to end?

What about setting up multiple escrows to protect each phase? This is something I have heard Southern California REI Mike Cantu talk about.

I have read other posts' similar to this one, but the answers are far too vague and usually conclude with the author saying something like "I assumed the VA loan subject-to the existing mortgage and didn't tell the lender."

What I am looking for is someone who can speak from real-life experience and explain to me how this would be done from start to finish, including the escrow processes. I am fluent in legal terminology, so please do not omit any key points by simplifying anything. Citations to any applicable laws are requested if known. Also, I AM NOT LOOKING TO GET APPROVAL FROM THE LENDER TO ASSUME THIS LOAN if possible.

I would appreciate responses being limited to those would can provide detailed instructions, and to questions seeking clarification. Thank you so much BP community: you are awesome!