So me and my fiance are looking into this. It looks like this company asks you to pay $200 for a listing of houses. All the houses they have are almost in foreclosure, and what you do is take over payments for about 6 months, in the other person's name, and after 6 months you can re-finance and put it into your name.
Is this a scam? If it is, how?
I guess you just find the house, and make the first payment. They said there is no credit check because you aren't asking for a loan. You are just taking over payments.
I asked what about when you go to re-finance will they run a credit check and is there any chance they can decline you and after those 6 months of living there is there any way you can loose the house? They said no, and your credit doesn't matter because the payments you make for those 6 months pretty much show how you make your payments on time and everything.
They also said the title and deed gets put in your name right away.
Can anyone help me with this???
Thx!!
2007-12-26 16:09:08 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
There is a better way. Contact a real estate agent in the area that you want to live...find out which one handles the forclosures in that area. Get in touch with that agent. Tell them you are looking to take over a property that is about to go into forclosure. Find the property....make a deal to purchase the property from the owner that is behind on their mortgage....get the agent to contact the lender, and ask for a short sale price reduction from the mortgage. They will normally discount the mortgage owed around 20-25%. Why you ask? Well its simple really....They know they are going to get this property back...and will have legal fees, loss of time fees, advertising fees, agent commission cost fees, court cost....another words...they would like to avoid these fees and take their hit right up front. Try it! It works! I know, because I use it myself!!
2007-12-29 09:39:56 · answer #1 · answered by better way 1 · 0⤊ 0⤋
Sounds like a scam to me. First you're paying them to give you a list you can probably get for free from those that are foreclosing. Then you are going to be responsible for payments that are NOT in your name. That does NOT guarantee you that someone will give you a loan at any time. And if they did, you have no guarantee of what rates you will pay or what closing costs. You are asking for trouble. The title and deed can NOT be put into your name because if money is owed on a house, the house and land are held as collateral and the note holder's name must be on the title because that gives them the right to take the title from you for not paying the note. You've said the note is in someone else's name and until the foreclosure they own the house. Their name cannot be removed from the title and yours put on it while you pay their loan. That just doesn't make sense to me.
Report these people to the better business bureau or anywhere else you can think of. If you don't believe me, get a second opinion from a unconnected realtor. Be prepared for him to laugh at you. Or call a local roving reporter and see if they will help you expose these people. . .
2007-12-26 16:50:31 · answer #2 · answered by towanda 7 · 0⤊ 0⤋
Something is definitely strange here. You mention that the deed gets put into your name immediately, but you pay the debt of the other person in their name. That's a big red flag right there.
All standard mortgages contain something called an alienation clause. Basically, it means that if the title to the property changes hands, then all remaining debt owed to the mortgage lender is due immediately.
Though some mortgages are assumable, you still have to apply to that lender as though you were taking out the loan originally, so they're yanking your chain on that.
Whether you are almost in foreclosure is between you, your lender and the credit bureau. Homes up for sheriff's sale are public record. Look there for free.
This is in all likelyhood a scam to get you to pay them 200 bucks.
2007-12-26 16:40:26 · answer #3 · answered by DEACTIVATED 4 · 0⤊ 0⤋
They are asking you to pay a fee for something you can do on your own. In the real world you can find a seller that is behind on their mortgage payments, you contact them or they contact you. The gist of it all is that they can't handle the payments. Let's say you come in and catch up the $4,000.00 that they are down in mortgage payments and you give them $2,000.00 to move, they give you a deed to their house and you own it. You continue making the payments to the former owners lender (they probably won't care, as long as the money comes in). Will they call the loan due? They could, why? They don't want the house. In the meantime, in a lien theory state, you own the home and re-finance when you feel it's right for you. It's called buying a property "subject to the existing mortgage." Do you see that by documenting your cancelled checks on someone elses mortgage, it could actually help you? When they deed the house to you, you own it. No one else can refinance something they don't own, but you can.
2007-12-26 16:29:07 · answer #4 · answered by Anonymous · 0⤊ 1⤋
It's a scam. You cannot just take over someone's payments to buy their house. Why would you make payments in the current owner's name? They'll say, "Thanks for bringing my mortgage current!" and kick you to the curb.
Even if they didn't, in six months you'd have to assume their mortgage and most loans are not assumable.
This is a total scam - run away fast!
2007-12-26 16:32:49 · answer #5 · answered by operababe_61 3 · 2⤊ 0⤋
talk this over with your real estate agent. write down you list of questions and concerns.
2007-12-26 16:16:16 · answer #6 · answered by KitKat 7 · 0⤊ 0⤋
my guess it is a rip off for the list as they can access other homes
2007-12-26 16:20:18 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Don't do it.
2007-12-26 16:18:51 · answer #8 · answered by Anonymous · 0⤊ 0⤋