Practical Implications of Taking a Property Subject To Mortgage

[Zach McMichael]

I am looking at a property that would be a good candidate for purchasing by taking over the payments on an existing note/deed of trust.  While I understand how the process works, I have never done this type of transaction and I am curious if anyone here can share some practical tips.

First, my biggest concern is dealing with the existing lender.  I've heard that lenders rarely invoke their rights under a due-on-sale clause.  Even if this lender does, it won't be a big deal because I am confident that I would be able to get a new note/deed of trust, if necessary.  If I take over these payments, how do I normally go about doing that?  Look at the current deed of trust and send monthly checks to the address listed for notice/payment in the deed of trust?  Will I need to keep track of the payments and the outstanding balance manually?  Or should I provide the lender with a new address for notice?

Regarding my agreement with the seller, would you recommend any formal agreement regarding my payment of the existing note?  Or, in your experience, is the transfer of title subject to the existing note evidence enough that I'll be making the payments?

Thanks for the help.