Subject to VA loan deal

[Daniel Bowden]

I am working on a deal where the owner is deceased and has a VA loan against the house. The property is about to go into foreclosure, and the executor is willing to allow me to reinstate the loan and make the payments.

What is the best way to take this deal down? Contract for deed, Land Trust, send the VA a letter notifying them of my intentions, etc. I have never done a subject to deal before, and need all the help and advice I can get.

[Bill Gulley]

Hi, well this is a strange one! Get with the Executor, they will need to get the probate court to approve distributions of the Will and arrange a stay of the notice of demand if one has been made, perhaps with the circuit court. The Executor needs to catch up any payments due (that might come from you). Assume the loan? You may need to get the hiers to agree to your deal as well, and how would they split that up if there is more than one? The more I think about it, seems like showing up at the foreclosure sale would be alot easier. Can't win them all! I had this three years ago and the deed was clouded as well, so by the time I could get it fixed, the lender would own it, cloud or not! I just walked away, too much trouble. Good luck, Bill