3 Unit Mixed Use Property Deal.....?

[Stephen Dillard]

I had a seller contact me through my marketing and I am wondering how or if I can help him.

He has a 3 unit (2 apts and 1 hair salon) property in Atlantic City, NJ. He is $16,000 behind in mortgage payments. He has a balance of $93,000 on his mortgage. The ARV of the property is approx. $250k.

He is looking to get approx. $50,000 cash up front to satisfy his contractor, who is in the middle of rehabbing the property. The work to get the property in rental shape is almost complete. It seems like it would be a good deal because it is in a decent area of the city plus the potential of rental income. He has a 6 year lease on the salon at $1100 a month and the apts could rent for $950 each. His mortgage payments are $1600 a month.

I think that he would "subject to" this property to me if I get him current plus the cash.

I am not to familiar with "subject to" as this would be my first one. My question is how would I structure this and could I even "subject to" this as it is probably in forclosure status at this point? Would I have to negotiate the back payments? What would you do to make this a deal or is it even a deal?