Landlord wants me to take over house payments, what happens next?

Question

We have leased a property from a real estate company for the last year, we were interested in renewing our lease but when we asked, the landlord said they have too many projects and want to be rid of this property. They asked if we wanted to just "take over payments" and own the house ourselves. This would be an ideal situation for us because we have wanted to buy for a long time but poor credit, income, and job history wont allow for it. The landlord (owner of the real estate company) said he would take us to his bank with whom he does all of his business and vouge for us if there were any issue with us taking over the loan, I dont know what that means, also can we be sure we can purchase this house in our poor credit situation? Also, if we are able to do this our rent would decrease over 100.00 a month.

Answer 1

Make sure you get everything in writing - signed and sealed by him and his bank. This sounds quite dodgy....I would be suspicious.

Answer 2

Go talk to a lawyer, you would need one anyway to settle a purchase.  There used to be sometging called a land lease but you didn't get deed to the prperty until it was paid up.  Sounds risky to me..

Answer 3

I pay mortgage to the original home owners.  GET A LAWYER, or you could get screwed!!!!!!!!  It's a nice way to buy a house, but have an amortization report, a finance check and lave a lawyer draw it up for you!  I am in the same situation and i only have 7.5 years left to pay on my house.  The old home owners are persistent and keep calling me to do things.  I want to have an injunction put on them, but that costs money.  Get a lawyer, it's the only way.

Been there, doing that.

Answer 4

As long as it's in writing, it might be a good idea.

Answer 5

Look it can be done very easy.... All you need is to have the current owner of the property record a grant deed with your name on it, and a contract that spells out all the agreement.../terms. You need also, a quit claim signed and notarized from the owner to be recorded later... Once you start making payments to the bank itself that will prove vested interest in the property, after 12 months of making payments to the bank (NOT HIM) from your checking account record the signed and notarized quit claim. The property is yours.......

FYI I wouldn't rush to tell the lender what you are doing because they could call the loan....What they don't know cant hurt them..unless you fail to make the payments....Instead just make sure he is current with the loan on the house....



That's a 30K gift your welcome

Answer 6

Very few mortgage notes are transferable - and even if they are the bank will put you through the entire process as if you were get a brand new loan, because basically you are. If you go through that process of getting a new loan to replace this one or if for some reason this loan is assumable you will get all the documentation needed and go to a title company to sign the papers. If they try to get you into this without that process then something doesn't sound right. It could turnout to look good and you make the payments for years then all of a sudden they show up and tell you thanks for making their payments for them and take the house back. Or you could be unpleasantly surprised some day when you try and sell it only to find out there is a big mess and you can't because it isn't really yours.

I wouldn't give up but I would only do it through a respected bank and by going through all the normal process and paperwork - no shortcuts. The bank will tell you very quickly if you can't do it with your credit - they don't want to waste their time either.

Answer 7

I agree.  As an owner of a finance company, I don't care WHOM vouches for WHOM.  Unless they're personally agreeing to securitize the loan, their "word" means nothing to me.

I think you've got a crazy case of fraud.  Logically, why would any bank agree to finance someone with "poor credit, income and job history" with the way the marketplace is right now?  I hate to say it, but if it sounds too good to be true, it likely is.

Pay the $200 to get a real estate attorney to review any "supposed" purchase agreement and have them oversee the purchase to determine if this is legitimate or not.

Answer 8

Sounds shady.  Don't do this without legal advice.

Answer 9

careful most likely you will not be able to assume the note based upon your bad credit, you need to get a lease to purchase agreement in line, what happen if you move forward with just a lease then in four years when the market has turned around, and then the landlord looks to evict you and sell the place? you would have no rights

Answer 10

If it sounds too good to be true there is usually a catch.

People's general greed won't usually allow them to just "give" away valuables like real estate.

One quick way to get into trouble is that the title has leins against it. If you take over payments(ownership) you are responsible for those loans and could lose everything.

Another quick way to get taken advantage of is that the value of the property has fallen so drastically that the mortgage against the property exceeds the value and you will be paying excessive amounts for the property. This might be why the landlord wants to get rid of it.

Always buy if the opportunity and means allow you to but be very cautious when somebody wants to do you a "favor". Most people are very self serving and could care less about what happens to you.

I agree with the other guy and you should seek some free legal advice through the county or state.

Answer 11

Maybe you'd like to shop around for a forclosure instead. You may be able to land something better that costs less and is affordable.  "Vouching" for you sounds shady, and a real bank would never give a loan on somebody's vouch.  They usually make sure that you can at least afford the payments.  Having a payment that is $100. less than what you're paying now does not state that you will also take on any and all costs beyond that.  So actually you'll be paying more than what you're paying now.

Answer 12

Sounds like a wrap and wrap-arounds are illegal if done without the lienholder's knowledge that ownership has changed hands.  Never, never agree to anything like this without thorough research of the existing loan, survey and title to the property.  The existing loan may prohibit what the owner is asking you to do.  Are their any liens or judgements against the property?  What does the survey look like; any encumbrances?  Are all property taxes paid?  In short, does the owner have clear title, a clean survey and is the existing loan assumable?

Furthermore, have you had the property inspected to determine its structural integrity?  Are you sure there are no potential hazards (safety, fire, or otherwise)?  Is it free from all wood destroying insects (termites, etc.)?

NEVER accept anything at face value!  If any of the above questions cannot be answered in your favor, what you 'think' you could be saving, may instead cost you a great deal more in the end.  Having lived there gives you some knowledge of the property, but even that is not enough information to make the kind of decision your landlord is expecting you to make.  It's just not that simple.

If you insist on moving forward, do yourself a favor and get recommendations on a good real estate attorney for your local area.  If there are any red flags, the attorney will find them.

Answer 13

I don't know where to start. Reading between the lines, I would guess that the seller is in trouble with the property you currently rent.

Go to the bank and get a loan decision.................if you are approved, hire a Realtor to represent you in the purchase.

You need a contract/appraisal/home inspection/title report/and a ton of other stuff to make sure you are receiving value for your money.