How do I stop forclosure and you keep home

How can I structure a deal on a pre-forclusre using sub2 and let the current homeowner still live (rent) the house back from me?

I have a deal I can do but the current owner wants to stay in home. I want to bring mtg. current and the purchase from them sub2 existing mtg. Obviously they cant afford their existing payment so If I bring mtg. current and buy for the balance on their mtg. and they rent back from me for lets say half of what their current payment is, then I’ll have to subsidy the payment. How can I set this up so they can be the renter and I buy sub2 and I still make a profit? Even If I was going to kick them out I dont see how I could rent back to anyone and make a profit. b/c the mtg. that I would be assuming carries a payment higher then I could rent the property for. Is it possible to do a sub2 deal and rent back? I see ads in the sunday paper that say “stop forclosure and keep your home”…I’m guessing thats what these investors are doing…but not sure.

thanks for the help!

I would recommend that you never leave the seller in the house. You addressed the point yourself. If they can’t handle it now, how are they going to handle it in the future?

In my opinion, buying sub 2 to rent out is not a good idea. It’s best to be out of this sort of deal in a few years. That’s why most sub 2ers will sell with a land contract (2-3 year balloon) or a wrap, or the daring ones will go with a lease option.

When this is done, you should generally expect to receive a downpayment, a monthly profit and a cash out at the back end.

If you leave the current tenant in about the only thing you could expect is nothing. So if they won’t leave, I would remind them the sherrif is coming and get them out. Or, simply move on to the next deal. This one is no good.