Walk away from house

Same situation as your family member. But, the property I'm buying isn't flipped. However, even if it is flipped, you can still do this if there is a chance for potential profit.

Buy the property subject to the existing financing for the amount of the financing. The only thing you will need to do is catch up the missing payments, and what you can do is give them a promissory note to pay that back to you in installments over the next (set your terms) at an interest rate of (set your terms (family is next to nothing in my books; basically, the cost its going to cost me to pay the cash upfront, whether I need to get a private money loan, use a credit card, or what have you).

I'm using a land trust to do this, but I am keeping the seller with 10% beneficial interest so they will make some money off it in the future and because 10% is the magic number of ownership where the loan can not be called due. (However, if a bank is going to be getting payments, they don't care where they come from and the chances of a loan being called due because of subject to is very, very, very low!!!) (Please do a search on my post entitled "There is no due on sale jail".) Banks would have to justify spending a cool 58-100K to foreclose on a a paying loan, so its not something they could justify too much to teach an investor a lesson.

There are many threads here besides the one I mention that talk about subject to, and many people here who can guide you as well. I also have a general trust document here on a message entitled "Protect your Assets..." and do a search on it as well. That's a very basic trust; it doesn't necessarily have all the clauses in there that are needed. But, it will give you an idea of what a land trust is and who the players in a land trust are.

Another option is to do a lease option and then do a sandwich lease.

I wish you the best!

It is CERTAIN we will SUCCEED!