Subject to Short Sale deals

[Jasmine Doster]

What is needed to successfully negotiate and close on a residential short-sale property subject-to the exsisting loan? Does the bank require you to have a certain income level etc in order to take over the person's mortgage? Someone who has succesfully done this please give me some insight.
:D

[Don Konipol]

A short sale means that the bank is willing to sell for below the loan amount. In this case they want to be out of the loan and want a cash sale.

I think what you are talking about is a loan modification, where the lender marks the pricipal amount of the loan down to the property value (the current administration has been pushing this for the last year and one half). These however are only done where the current borrower continues to own the property. Of course, after a current borrower does get a loan modification, you can purchase the property subject to the existing loan. This would be in violation of the due on sale clause, but it is possible that the sale would be under the radar of the lending institution.