HMLs are collateral lenders, some don't care what your credit or net worth might be.As to pre-approval, sure, no problem, you're pre-approved subject to acceptable collateral being assigned.....wink and a nod ;)

@Scott VandenBerg , I'm not very well versed in this subject but I do know two people who do this every week.One thing you need to be careful about is that the bank can still legally come after the new owner for the balance of the loan after the sheriff's sale.

I have read around 25 books on the subject as well as personal finance and am looking forward to starting in a few years.

@Randy Gross Are you saying the seller did a BK (would be chapter 13) and did NOt include the subject property in the BK?

when buying real estate with subject to / wrap around mortgages how is the investor or home owner protected from each other after the deed is transfered.

Not really, the taking of a security interest includes deferring the transfer of title subject to completing the terms of any financing agreement.

@ChrisLogan Can you explain how a "subject to" works.

S Crop on the other hand, by definition allows for distributions which can lower effective tax rate since there is no SS tax on distribution.

Nothing else matters more about determining value of a property than the recent sales in the immediate vicinity of your subject property.

I have a lead that came in that is a good candidate for a subject to deal.