Can anyone explain to me the true process on buying a Pre Forclosure? ?

Question

I see these "take over payment" plans that seem better than going out and renting but no one is telling me what the real catch is so that I should beware. I know it is a scam but I can't figure it out.

Thanks!

Answer 1

There are a bunch of problems that could happen with this even with the best of intentions.  To protect yourself you should always legally assume the loan (that means you would qualify for the loan thru the current mortgage company- that will likely take six weeks or more).  You should always get a title policy to protect you and make sure you will actually own the property and not have any clouds or liens that will prevent you from selling later.  You should always get a home inspection hired and arranged by you so that you know the true condition of the property.  You should always look at comparable homes for sale and comparable homes that have recently sold so that you can tell how much the house you are buying is really worth.

Most of these schemes do not want you doing these things.  They do not want you to protect yourself.