Posted by JohnBoy on February 20, 2002 at 22:37:02:
If you do this just make sure it’s all being done from the beginning. Don’t just draw up contracts later by back dating them. That would be fraud!
Have the seller deed to a land trust, then have the trust sell to you on land contract. Then draw up the land contract having it state in the contract that buyer may later, at any time, elect to buy the property subject to the seller’s existing mortgage(s). That way you have entered into a valid land contract and then later purchased subject to under your rights stated within the land contract. What the seller does later with showing the land contract to the lender is on them, not you. Technically, once you buy subject to, the land contract would no longer be valid once you purchase subject to afterwards. That would be misrepresenting documentation to the lender at that point by claiming and showing them the land contract.