I need some help with the best strategy to use for a potential deal on a SFR I found recently.The owner is a recently divorced individual who got his previous home in the settlement.

Hi well, with a properly structured Contract For Deed and settlement you execute a Warranty Deed to convey title to the buyer and that is held in escrow, it is not filed at that time.

It's helpful to read the language to understand what does - and what doesn't work to legally avoid due-on-sale clauses.Exemption of specified transfers or dispositions: With respect to areal property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation,or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon— (1) the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property;(2) the creation of a purchase money security interest for household appliances;(3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;(4) the granting of a leasehold interest of three years or less not containing an option to purchase;(5) a transfer to a relative resulting from the death of a borrower;(6) a transfer where the spouse or children of the borrower become an owner of the property;(7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;(8) a transfer into an inter-vivos-trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or(9) any other transferor disposition described in regulations prescribed by the Federal Home Loan Bank Board.

So long as the equity is there and the lien does not put your deal underwater for you, you could proceed as you can payoff the lien in full and that amount will be credited at settlement toward your purchase price.

Every payment you make for her is just giving her more out or the settlement.

Forget the note, call it an insurance settlement paid on an annuity basis, call it a judgment won against a large company, call it an annuity from Wheel of Fortune, whatever. it is only a stream of money to be paid over time and you agree to pay so much for that...period.

Yes, but here is another angle, this guy is in a real hurry to cheat the government it looks like, but he could alsobe cheating creditors, maybe a judgment, divorce settlement even his probation officer from his earnings to pay his past motel bill.

Otherwise, typically the buyer should pay for the title company closing/settlement charge, title exam, title insurance (even an Owner's Policy if not a lender deal is optional and often worth the protection depending on the deal), Closing Protection Coverage (if applicable), Courier/Delievery charges and Recording Handling fees if the title co charges them.

The entire settlement cost me a bit less than $3k, which is where I got my final price of $68k.

Especially since the LLC (and its assets) will most likely be included in the property settlement, don't treat this as a do it yourself project.