Yes, Commercial properties usually have a due diligence period and a much longer lead time for the transaction.

Yes, but there are arm's length issues since he already bought it, now doing something may take off into the land of sham transactions.

One was a REO condo and the other a short sale SFR - both transactions closed in early 2013.

There's no need to keep them in the dark.You may also want to have a separate document that states that the lease agreement that they are signing with you becomes null and void if the transaction does not consummate/close.

I have an opportunity to purchase a home tomorrow subject to the existing mortgage (~60k) which will give me immediate ~25k or so in equity.Do any of you had advice to purchase subject to with the due on sale clause or to avoid the transaction?

I am tempted to make the transaction but I am a little worried, I know there can be many head aches to deal with.

If your MIL's IRA made a loan to you it would be a prohibited transaction.

Kirk,Most titles and escrow will not let you use the end buyer's money to close the A to B transaction, and if they did they will need to let the end buyer know, and that could kill the deal.

As I alluded to previously, it was kind of a goofed up transaction (luckily, none of the goofiness was on our part).

I believe they charge $6 per transaction.