PreForeclosure Legal Documents
I've been researching purchasing preforeclosures and don't thoroughly understand the documentation necessary to complete the deal. Once you've negotiated with the homeowner, what forms need to be filed to make the sale complete? Where can I locate copies of these forms? Also, I've heard that some preforeclosure buyers purchase the property without ever notifiying the lender- is this legal? Certainly not ethical, right? What then happens when you go to sell? Thanks a million. 
Heather:
. This buy strategy is certainly possible and definitely legal (as long as there is full disclosure between you and the seller about the deal). I think you'll find, however, that instead of just having to give "moving money" to your seller for the deed to their house, you'll probably have to bring their loan current (making up any back payments and penalties) before you close your deal.
A former New Hampshire-ite myself, I'll give this a go, even though there's not enough info in your post to suggest which method you're looking at.
Purchasing preforeclosures is no different than purchasing any other property (with some exceptions). If the homeowner has not been foreclosed on yet, you are basically buying the house from him/her at an agreed upon price or terms. Being in preforeclosure doesn't require specialized documents to buy a house.
The exceptions I mentioned are that anyone in this kind of trouble DEMANDS you do careful due diligence to find out their EXACT financial situation--you don't want to be surprised by liens they didn't mention or what their real status is with the lender that's foreclosing.
Whichever buy strategy you are looking at using (subject to, cash purchase, assignment of contradt) is going to determine which documents you use.
It sounds sort of like you're talking about taking the property subject to ("...purchase the property without ever notifiying the lender..."
If you do manage to bring the loan current and take the property subject to, you now are the title-holder of record, which means you control that property. You can then follow your exit strategy: sell outright, lease/option, sell on contract for deed, etc. When your buyer pays you for the property, you use the proceeds to payoff the original mortgage (still in the Seller's name) and keep the difference.
I would strongly suggest researching buy and sell strategies before jumping in--this site alone has a ton of info, plus you can check out the Products section for more info (for $$$).
Andy
Thanks Andy! I apologize for not being more specific in my posting- I am interested in taking the property subject to. Seems fairly standard that moving fees, monies to bring mortgage current, and even some extra money to the homeowner are necessary in this type of transaction.
I'm still a bit confused about how to actually solidify myself as title holder of record and the documents needed to fulfill this. Some books reference a home equity purchase contract to put the deal into writing (which seems to resemble a Purchase and Sales Agreement in its purpose ) and then a grant deed to actually transfer the title. Are these the correct documents? Anything else? Also, where can I get these documents? Thanks!
Heather :-D
Try to do search for file extension pdf or doc using key words such as: "NH property contract form". I know in Texas, the real state commision requires to use the standard forms for real estate transactions.
http://www.trec.state.tx.us/formslawspubs/forms/forms-contracts.asp