Any suggestions to make this deal work?

I WOULD BUY IT SUBJECT TO THE EXISTING MORTGAGE. TAKE-OVER BOTH MORTGAGES SUB TO, AND CONTINUE PAYING BOTH MORTGAGES TO THE SELLER,AND HE CONTINUES PAYING BOTH MORTGAGES. HAVE SELLER OPEN UP A SEPARATE BANK ACCT, THAT YOU BOTH CAN ACCESS,AND YOU DEPOSIT THE MONTHLY PAYMENTS IN THAT ACCT. ALSO HAVE SELLER SELLER SEND YOU CANCELLED CHECKS OF EACH PAYMENT, THAT WAY YOU KNOW HE'S PAYING THE MORTG EACH MONTH. DEED GOES IN YOUR NAME,AND MORTGAGES REMAIN IN HIS NAME. FOR SECURITY PURPOSES FOR HIM,AND A GOOD INCENTIVE WOULD BE HAVE AN ATTORNEY DRAFT UP A QUIT CLAIN DEED BACK TO THE SELLER THAT HE HOLDS SIGNED BY BOTH YOU AND THE SELLER SHOULD YOU DEFAULT ON MAKING PAYMENTS. AT THAT POINT THE ATTORNEY CAN RECORD THE DEED BACK TO THE SELLER SHOULD YOU DEFAULT,AND NO HARM DONE BETWEEN BOTH YOU AND THE SELLER. HOPE THIS HELPS

I WOULD BUY IT SUBJECT TO THE EXISTING MORTGAGE. TAKE-OVER BOTH MORTGAGES SUB TO, AND CONTINUE PAYING BOTH MORTGAGES TO THE SELLER,AND HE CONTINUES PAYING BOTH MORTGAGES. HAVE SELLER OPEN UP A SEPARATE BANK ACCT, THAT YOU BOTH CAN ACCESS,AND YOU DEPOSIT THE MONTHLY PAYMENTS IN THAT ACCT. ALSO HAVE SELLER SELLER SEND YOU CANCELLED CHECKS OF EACH PAYMENT, THAT WAY YOU KNOW HE'S PAYING THE MORTG EACH MONTH. DEED GOES IN YOUR NAME,AND MORTGAGES REMAIN IN HIS NAME. FOR SECURITY PURPOSES FOR HIM,AND A GOOD INCENTIVE WOULD BE HAVE AN ATTORNEY DRAFT UP A QUIT CLAIN DEED BACK TO THE SELLER THAT HE HOLDS SIGNED BY BOTH YOU AND THE SELLER SHOULD YOU DEFAULT ON MAKING PAYMENTS. AT THAT POINT THE ATTORNEY CAN RECORD THE DEED BACK TO THE SELLER SHOULD YOU DEFAULT,AND NO HARM DONE BETWEEN BOTH YOU AND THE SELLER. HOPE THIS HELPS

With the way the lending rules are these days, I would recommend doing an all inclusive trust deed, or "wrap". That is seller financing. You said the seller is willing to be creative. Something to remember when doing this. I believe all mortgages have a "due on sale" clause, so the current mortgage holder could call the note due, but if it is being paid, it is very unlikely they would do that.
I have found that many of the title companies have disclosures to acknowledge the "due on sale" issue.
If you do the seller financing, have a third party escrow company collect the payments. That will ensure the underlying loan is being maintained and will make it ealier to refinance down the road.
Good luck,
Jbezoski

Why don't the seller just sell to them? Maybe do some sort of lease option or rent to own? I'm sure there are people on here that would know the numbers that would make sense since the house isn't upside down.They could make the payment to him & he would still pay his Mortgage payment..Sounds like he could cash flow some also....

1.What will this property actually sell for in the condition it is in and in the current marketplace? Base your number on sold comps in the last 90 days, currently listed comps and under contract comps. Whats it worth for real? You have to know that number before you can say anything is a "deal"
2. How can a person that can only qualify for $200,000 buy a home that is listed at $299,000. How long before the tenant can pay the $99,000 difference?
Owner carry the $99,000 and tenant get a $200,000 loan? Subject to? Sandwich/lease with option?
3. How are you going to make money in this deal?
4. It sounds a little like trying to pound a round peg into a square hole but you never know.

Michael Mangham
MD Home Acquisitions LLC