Hi Debbie, my feeling is know everything you can about the existing mortgage i.e.,
> How many payments behind and by how much
> what are the monthly PITI
> Did the current owner file bankruptcy
> What about the deed, who get's it and/or when?
> And the list goes on.
Bottom line, be as prepared as you can be, and probably the best thing is to have an attorney that is on your side (as I am not one) review all that is being considered. And remember, the lender has a right to call the loan due anytime the deed trades hands. The argument against that these days is that as long as the payment is being made the lender doesn't care, they need the money.
If you'd like to talk more about it I'd be happy to. I'm actually doing this myself right now, and have a friend who has done hundreds of these in Georgia.