Taking Over Mortgages

Ok well what do you guys and gals think about this idea, its basically a subject to but with lender approval. Lets say the homeowner is facing foreclosure and owes $60,000 on a $100,000 home. I negotiate with the homeowner and they are motivated enough to deed me their property for a few grand. The foreclosure auction is in 2 weeks and i tell the bank about deed transfer and that im willing to buy the home outright immediately for the loan balance or pay their reinstatement fee and make the payments. Can this possibly work out and i turn around and market the home for the 100k?

normally you wouldnt tell the lender about the deed transfer. you would just reinstate the loan by curing the back payments and then take the deed and do whatever you want with the property afterwards.

Why is the homeowner being foreclosed if the house is worth $100k and he owes only $60k. Have you stopped to ask why he was not able to sell it? You may find out that the house is not worth $100k afterall… Good luck!

well this was just for illustrative purposes only. this is not an actual deal however due to the house in the example is about to go to auction in a couple weeks and in the market that we are in there is no way he would be able to sell to a retail buyer… maybe an investor… but lets say i already got him under contract and i pumped his head up using my snake like charm (j/k) he feels that the only way out is to sell to me! Then do you think this would work?

yea but here in Texas the new law says that unless alot of disclosure have been made, the seller could come back at a later date and demand his home or money back from you. Im unsure about the likelyhood of this but it is very well possible.