I'll be leaving Michigan and leaving an empty house behind that I can't sell. A guy called me wanting to assume payments until it does, so long as I sign over the deed to him. The loan will still be in my name. What is the risk here?
2007-05-15 03:25:51 · 6 answers · asked by Tr0nik 2 in Business & Finance ➔ Renting & Real Estate
He is basically buying your house and making you the mortgage holder, which is not allowed by most Mortgage Companies. Calls yours and see. It's a clever way of buying a house with no money down and no loan application. He then sits on it ot puts a renter in the house til it does sell and he keeps the difference between what it sells for and what he owes you. This can be done legally..consult an attorney. Risk.. You have no guarantee that he will pay and then you will have to foreclose on him, and YOU are still responsible for the mortgage payments. If Mortgage Company and attorney say it is doable..have your attorney check this guy out. And get LOTS of references and call everyone of them.
Vicki Watzlawick, Broker Owner, Exit Platinum Realty, www.vickisdreamhomes.com
2007-05-15 03:37:46 · answer #1 · answered by RealtorV 3 · 1⤊ 0⤋
Do not deed the house to him. If you would not loan this guy the value of the house (which is what you are doing) then absolutely do not transfer ownership of the house to him. You can do a lease option providing that he makes the mortgage payments, performs the maintenance, and assumes all liability for the house in exchange for which you will deed the house to him when he pays in full. He will get the equity for any payments he makes plus improvements and he should be happy with this if his intentions are to perform his duties under the contract. If you decide to consider this option, you still need to check him out completely. Do a credit check, get references, ask him if he has other properties etc.
On a side note, a reputable property manager will rent your house for you and take only a percentage of the rental income. You can do that until the market improves and your equity builds. Then you will get a return on your investment in the future.
2007-05-15 10:48:18 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Don't even think about doing it! If you do, you're responsible to pay off the loan and he get the house free and clear because he now has the deed in his name. The bank will still hold you responsible to make the payments because you are on the loan. Let him take the loan and leave the deed in your name. Now you're covered.
This type of scam takes place all over the usa.
Example:
You buy the car, be 'responsible' for payment, and have them put the title in someone elses name. .
2007-05-15 10:34:04 · answer #3 · answered by Blessed2Bme 2 · 0⤊ 0⤋
That's called "equity stealing" or "equity theft". He'll rent it out until it forcloses and then walk away.
If your loan is assumable with lender approval, tell him you'll be happy to sell him the house and let him assume the loan IF the lender approves him as a substitute borrower.
2007-05-15 10:39:15 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
when someone assumes the loan you are selling the house to them and you are no longer the morgate holder. when the sale is made he gets the money that is why he wants the deed in his name.
2007-05-15 10:37:13 · answer #5 · answered by Kathy C 1 · 0⤊ 0⤋
Ask yourself this question -- What if the property investor fails to make the payments?
2007-05-15 10:44:51 · answer #6 · answered by James V 2 · 0⤊ 0⤋