I successfully negotiated a subto deal today, however, I won't do it because its too risky. If you don't know what a subto deal is, look for my thread on buying strategy of the month (Feb).
Arrears (HOA & late payments): 4k
Repairs needed: 2k
The seller has pain. His adjustable rate mortgage suddenly went up and now he's over $300 a month in negative cash flow. He's missed two payments.
I could take over subto, and since his payments are high, I would fixup and sell immediately. However, the problem is if using a realtor, the holding costs and commissions would not make this a deal. Oh well!
Negotiating with him was interesting. At first, he was saying , " I am not interested in deeded this property over to you." By the end of the conversation, he was willing to do it. Its amazing the power of establishing repoir and being patient. His pain was the payments and I had a plan to solve it. Too bad he didn't have an extra 10 k in equity!