Possible Sub 2 Deal? Can someone advise?

[Rich Hupper]

Hello

I found a homeowner who bought a 2 family back in 2003 for 225,000. Due to poor management on their end they have defaulted on two mortgages.

I believe both of the mortgage debts combined equal roughly 215,000. 

ARV comps in the area go for 260,000.

The property is in rough shape, with 2 tenants who do not pay rent 

The property is on the way to foreclosure however I do not know if an order notice has been recorded yet at the registry. 

The sellers want out. 

Would this be a good situation for a subject 2 deal?

What would I have to do first? 

How do I get the tenants out and do I do that before or after the transfer of title?

Would I do a title search and get title insurance?

Thank you

[David Friedman]

Definitely do a title search. Order title insurance. Ask for a payoff statement from all beneficiaries. just because they owe 215 does it mean they have an extra amount in arrears that you would need to pay to bring all of the loans current. I wouldn't do anything until you are sure of the loan situation. Don't risk your time or money without knowing everything.