We filter thousands of loans each year and underwrite, close and fund hundreds of those per year.

The contract was a simple 3 page one and I wrote this in.Also, it is a single family being rented as a rooming house (which is technically not legal here).

@Kevin Cole I’m not a lawyer and this isn’t legal advice but in my opinion if it hasn’t been voted on it may not happen.

., there’s a strong chance you could legally convert to a two-family.

SO why all the legalize right, well because like any good law there is a series of if's, but's and when's. 

How to Structure the Deal to Protect Your $20KIf you’re willing to cover the $20K arrears, here’s how to protect yourself:Option 1: Secure Your Funds with a Lien or Escrow AgreementUse an escrow account: Deposit the $20K into escrow with clear terms—if the assumption is denied, the funds return to you.Record a promissory note & lien: If the deal falls through, this would give you a legal claim against the property to recover your funds.Option 2: Sub-To + Wrap While You AssumeSubject-to deal: Take over the existing loan payments before assumption approval, securing control.Escrowed deed transfer: The seller signs the deed into escrow only to be recorded after assumption approval, ensuring they can’t back out.Lease option fallback: If the assumption is denied, consider a lease option agreement until another solution is found.Option 3: Negotiate a Seller Financing HybridAsk the seller to carry a small second note for the $60K equity gap at favorable terms.Use your $20K as a down payment, structured as a secured loan against the property.3.

It potentially offers legal protection.

Account Closed"Barriers to entry", that's the term.

The fact other properties have chewed up sidewalk isn't a sound legal argument either.

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