I do know in fFL it Can be a felony to do a sub2 and Not pay the underlying, especially in the case of a property already in default.I agree there are way too many people entering into sub2’s without the ability to cover the risks.  

Not many lenders out there allowing a second mortgage position behind their first position on a non-performing asset or even a performing asset because if the borrower defaults on the second position then the holder of the second can start foreclosure proceedings on the property and it gets very messy for the the first position holder.

I had an agent friend trying to buy an REO, got stalled by “title problems” no timeline to cure......a quick search of the foreclosure file showed they forgot to name a junior mtg in the foreclosure...they were going back into court to vacate the foreclosure, start again naming the junior mtg holder, yada yada.....6 months minimum.

finding quality property with quality tenants is as important as timing the market.. timing the market is more important if your going to flip .. but for long term buy and hold  your not going to sell if the market retreats alittle becuse your a long term buy and holder.. market flucuations should not concern you.its all about rent.. and stablity of tenants as i said..

You do not need to be a veteran to assume this mortgage as they no longer need this VA benefit.The difference between the loan balance and sale price (approx $95,000) would need to be paid for via check  at closing as I have yet to find a mortgage company willing to act as junior lein holder. 

I'm looking for recommendation to an escrow company that can close a "subject to the existing financing" without having the lien holder to approve of the assumption of the loan by the Buyer for a deal I have in Tacoma, WA. 

That is, don't buy any notes at first.Instead, get good at marketing for notes (that is, finding notes through either direct mailing from purchased note holder lists or networking through professional referral sources)-- I like the preformingnote space (the "ma and pa") note holders as I am good at finding them and I'm used to dealing with these types of people...a lot of the time, they need guidance and that's where I come in.

Fannie Mae Homestyle requires the repairs be done within 12 months and will have less restrictions than the 203k but you need to remember that the lender is securing your loan against the asset (this being your home) and as the note holder they want the work done to secure there interest in the collateral. 

You should make sure your state does not require you to notify the lien holder.

So discounted real estate company will survive and be profitable to its share holders?