Still Confused!!!

[Adrian Reyes]

Hey everybody, So this question goes out to all you wholesalers out there! And to all RE pros, ok everybody. I say wholesaler because well I've done pretty much all my homework on that particular strategy. So my question is this; when you visit a distressed home with a VERY motivated seller and #1 they still have an existing mortgage/loan or #2 are behind on taxes what happens next?? I'm still trying to understand " sub to" or "due-on-sale" etc. please I need help! I'm open to all your information. Thank you

[Ned Carey]

If you are paying more than the existing mortgage and taxes then they just  get paid off at settlement. As often as not I will walk on a deal if that is not the case. I want the easier low hanging fruit. 

However if I see a clear angle I can use in the negotiations, i will try to work out something with the tax lien holder and the bank.

There has been a lot written here on BP about Sub 2 and due on sale. A search should find plenty of info. There is no one right way to do those deals. It is always a matter of weighing the risks, legalities, ethics and benefits.