First Subject To Deal with a FHA loan
I am hoping for some experienced input before I proceed with a deal and closing.
I have a seller who has agreed to sign my purchase and sale agreement.
FMV is around $100k; I will pay $76k and put in $20-30,000 before lease optioning it with a sale price of between 130 and 140.
I will pay $5000 cash at closing and the balance of her mortgage, $71,000, subject to her FHA subsidized mortgage.
I will be making mortgage payments from a land trust in the name of the property. I will keep the existing property insurance in place a supplement it with a second policy.
My experienced real estate attorney here in Maine feels this should not be a problem. Should one arise, I'm prepared to settle the loan if it is called. The lender will not be notified of the transfer of the deed. We're keeping it under their radar.
Comments? Opinions? Similar experiences? All appreciated.