I do think that the idea of taking a seller out of the underwriting picture unless qualified to do so is a good idea, because taking someone who 1. is not qualified who, 2. has a vested interest in the sale going through, and especially 3. where that note holder services the note and has again, a vested interest in the failure of the borrower to perform is nothing more than a fraud under the hat.

For example, neither the IRA holder nor any disqualified persons to that plan may live in or vacation in the property."

Third, owner still has to convince second lien holder to remove/transfer/work out second lien if it doesn't work with your purchase price.2) Buy property at auction or after first lien takes it back.

Geez guys, while there is great advice as to getting assistance, which Dee will need to do, the process was his question....Texas is unique but even so, I believe it's the installment contracts that get you in trouble there and that you can do a sub-2 ....I was told by a Texas attorney that all residential sales need to use the Texas Real Estate Sale Contract and by adding addendums you can design your deal to some extent.You will certainly need title work and make sure liens are cleared unless they are agreed to be assumed.If I were a betting man, I'd bet that constructive notice to the underlying mortgage holder would be necessary in Texas, if not, IMO, it's still the way to go and I'm sure it makes a closing agent happier.I would also bet you will need to use a Special Warranty Deed or Grant Deed to warrant good title excepting out the existing mortgage.You transaction will also require customary disclosures by the seller, showing the transaction on a HUD-1, filing 1099s as applicable, obtaining a title policy excepting out the underlying mortgage and escrow disbursements.

Additional insured is not the same as being a holder of the policy.

Yes, the issue you are running in to is due to the Feds allowing the forbearance with the borrowers, thereby putting the servicers in a position to have to pay the bond holders even though the borrowers aren't paying.

I was thinking it would at least make a decent short-term rental until i can work something out with the mortgage holder or try to wholesale the option if i get offered a good price...any thoughts or does this strategy of buying liens only effective on free and clear properties?

In this binder you can see the one page property card that show's the sale price, the new deed holder, the assessed value, along with other property specific details.

There is no double closing as you can sell directly to any new buyer with others in title or by using a Specific Durable Power of Attorney (SDPOA) from other title holders.

The penalty is on the one who originates, negotiates, processes and anyone participating in such activities, so it's not just the seller or note holder.