Pre-Foreclosure Partnerships with homeowners/sellers

[Angel Perez]

If taking over a property "subject to" what would be the Cons to simply having the homeowner transfer the property to an LLC which outlines the ownership percentages negotiated and having the homeowner be a partner in the deal instead of simply pushing them out of their own home?

I know about the Do On Sale clause, but what legal & tax pitfalls should I look out for aside from that? How could this negatively affect the homeowner/seller?

[Tom Gimer]

By saving the home in such a manner an investor may find himself/herself as the subject of a foreclosure rescue / equity skimming / fraud complaint. No good deed goes unpunished. Also, once the property is sold and they undoubtedly have seller's remorse, they may refuse to leave the property. It's the gift that keeps giving.