Posted by waynepdx on July 22, 2002 at 12:46:44:
Offer them what they owe on the house. You will pay the PITI only. They will sign a deed over into an escrow account and you the check sent to the lender will be from there.
They will also make the next 3 payments on the home.
They will also sign a power of attorney in case they get sellers remorse.
You will have them sign and then you will record a performance mortgage to stop them from further encumbering the property.
YOU will record an affidavit of Option on the home.
They will list you as an additional insured on the home and change their policy over to the landlord type.
You will carry your own insurance on the home (usually about 50 bucks.)
Your t/b will carry renters insurance on their property in the home.
If they do not agree to all stipulations then NEXT…follow up with a postcard once a month for 3 months. After they start making those double payments…then the whole ball game may change with their motivation. You will then be able to go take it subject 2.