Subject-To Deal Opportunity Need Advice

[Michael West]

Hi everyone, I have a potential opportunity falling in my lap and I'm putting together some options for a win-win scenario for my seller and myself. The seller is an elderly woman who recently lost her husband after he had put their mortgage in forbearance a year ago and is now being faced with possible foreclosure since they are calling for full payment of the amount due from forbearance. She feels the need to sell the property to get out of this situation and possibly buy a trailer to spend the rest of her days in with the revenue from it.

*Note* I am a licensed realtor and I consider myself a problem solver.

The idea of putting it on the market is completely open and I would gladly represent this house for her as my client. I've ran some comps against the number she would need as a bottom line (after all fees) to catch up on everything and move forward the way she wants and it will be close call to make happen due to the property condition. However, she is also in a bit of a battle against time with the foreclosure being filed and may cause a handful of additional hoops and stress on her that this woman does not need.

Here comes one of my potential solutions:

The Subject-To.

I would love to help her out and also invest into this property. I have this idea that I want to purchase it this way and getting all of her fees and delinquencies caught up, while also possibly let her remain living in the property with a lease-back agreement (she is able to make regular monthly payments at her current mortgage. They were mislead by someone to go the forbearance route). Her current mortgage is attractive to me and eventually, putting money to fix this property up would yield a great ROI and make for a wonderful BRRRR option in time.

I've never done a deal like this before (subject-to), and I do understand the due on sale clause and all of that. I feel comfortable with solving that issue if it comes forth.

My questions are this:

How is the purchase agreement different using this method of transaction vs a normal PA? Are there specific clauses or wording that should be used?

I know that the mortgage stays in her name, but how do I make it so that I'm the one actually paying it directly?

As far as title transfer goes, is it the same as a QCD?

Any help or advice with this would be greatly appreciated. Thank you,

-Mike