Subject To opportunity

[John Podpora]

Need some advice about whether I should proceed with a deal that would by my first Sub to. 

Property: 3br 1 ba 1050sf in Portland OR valued at ~$260k.

Loan: principal balance ~$199k @4% with PITI= $983 per month.

Amount to bring loan current: $14,400.

Market rent ~$1550.

Owner agreed to the sub to plan of allowing the loan to reside in place for five years.

He wants to walk. "Give me $50 and I will walk and leave the loan in place".

My strategy is actually to owner carry. ~$20k down and payments ~$1600 per month PI.

Seems like sound numbers to me.

What has me paranoid is the mortgage holder. The loan is owned by a predatory outfit named Ocwen. Net is rife with horror stories about these people and their practices of preying on customers with out and out fraudulent tactics. Customer service horror stories always involve some script reader in India who just keeps asking for paperwork to be sent and kicking the can so fees can continue to accrue.

So now I enter. I want to reinstate the loan and use a loan servicing company to deal with collecting and disseminating payments for as long as I keep the property while trying to walk quietly to prevent the dreaded 'due on sale clause'. But do I dare trust Ocwen in any way to not make my life miserable? Do I dare send a cashier's check (or a personal) to reinstate the loan and have faith it will be applied appropriately?

I so want to do this deal but I am spooked by these guys. Am I overreacting? I am looking to the BP community for opinions and advice. Heck, poke holes in my deal and help provoke thought for me and perhaps others. But specifically, should such a shoddy outfit as Ocwen hold significant sway over me as to whether or not I do this deal?

I will be grateful for any feedback.

Thanks.