can you legally take over the morgage of a pre foreclosure home?

Question

I just wanted to make sure... I know the needed paper work has to be done of course , so if the owner agrees it would stay in their name I would pay the remaining morgage every month, and once the morgage was paid off the owner signs the house over to me, so I help their sredit from down sliding and in return they give me a home I just want to make sure like I said that this is in fact legal serious answers please,

Answer 1

You can assume some mortgages.

However, it sounds like they want to keep the mortgage and title in their name while you make the house payments. They also get the tax benefits.

The big problem with this little scheme that I see is that you may the mortgage, but end up with no house in the end.

You are much better off assuming their loan. You take the loan and the loan and the title of the house are in your name. You also are the one to write off the mortgage from your tax return.

While the method you mention here might be legal (assuming their loan is not owner occupied) it is a bum deal for you. You are much more likely to end up screwed over then anything else.

Answer 2

That depends upon the wording of the mortgage contract. Some are assumable and some are not. The days of the old fully assumable mortgage are long past. If a mortgage is assumable the buyer must meet the lender's standard creditworthiness standards.

The mortgage will NOT stay in the original borrower's name if it's assumed properly. The type of transaction that you are proposing is full of legal risks. Do NOT attempt to sidestep the process or you may literally wind out in the cold with no home and nothing but a bunch of canceled checks for your efforts! On the other side of the ledger, if you walked out in a couple of years the current owner would have their credit trashed by the resulting foreclosure and you'd walk away unscathed. Therefore only 2 fools working in concert would ever try such a transaction.

The proper process has you assuming the mortgage with the concurrence of the mortgage lender. Your name replaces the current mortgage holder as the responsible party (you'll probably execute a new note) and you receive title to the property immediately, subject to the existing mortgage. The current owner is released from any further liability for the payments on the mortgage.

If the current mortgage is not assumable then there is no legal way to take over the current mortgage. Any transfer would trigger the Due on Sale clause in the mortgage and you would either have to sell the property or provide your own financing to keep the property.

Note to Mary B: There most certainly ARE assumable mortgages that are not FHA/VA. I have one currently, a conforming 30 year mortgage from a major commercial lender. It is fully assumable as long as the buyer meets the lender's standard qualifications.

Answer 3

There is no such thing as assuming a mortgage anymore, unless it's an FHA/VA loan.

You must credit-qualify and purchase the home, just like any other buyer.

Answer 4

It would depend on the existing financing. If it is a typical commerical loan you would have to qualify for the loan by the lender. If it is a private loan it would be up to the lender.