Can I offer to do a "subject to" deal with a lower offer than asking price?

[Todd Vicknair]

So heres potential scenario.

house is not on MLS as of yet, it is a short sale. owners asking 200K, what they owe. my question is, can I offer to do a "subject to", but offer 120K? it needs to be rehabbed and of course i need a profit. Just didnt know how that worked if they accepted lower offer with subject to. I would offer a down payment just say 20K, offer small amount to have them move out, put deed in my name, pay down the loan at the 200K mark with mortgage in their name. rehab the home, sell the home just say for 365K. now what happens? who gets the check at closing? am I paying them the 100K that I owe only, then they have to pay back the other 80K to whom? would it be me that they owe the 80K? sorry im lost, maybe this scenario will not work.

[Bill B.]

You can’t do a short sale subject to. The short sale is the end of that loan. The bank is definitely going to get at least a BPO to find out the most they can get for it. It is going to be listed on the mls before it sells. No bank employee wants to be accused of selling off market for personal gain or not getting the most it can for the bank. And there’s no upside to that employee. 

Ps. I haven’t seen a short sale in 10 years. But “back in the day” the bank’s contract would say that it had to be an arm’s length transaction, AND the short seller could not receive any benefits/money.