Questions about foreclosures?

Question

I was recently emailed a foreclosure listing that said that I could take over a mortgage on a prefclosure house with no money down and no credit check. I guess my question is can you just take over someone elses mortgage payment?

Answer 1

Sounds like a SCAM to me!

Answer 2

If you are buying the home subject to a mortgage that is in default, that would not be wise as it will go to foreclosure if it is not brought current and the foreclosure action is canceled.

Sounds a little fishy.

Answer 3

definate scam. You can assume FHA mortgages but you must be approved to do so.

Answer 4

The owner signed papers saying that she would never do what you are suggesting.  You never signed anything.  But if you are discovered by the lender, your loan will be called "due and payable" immediately.

Answer 5

You're basically renting and continuing the mortgage payments of  the previous homeowner. This would only prolong the foreclosure process - they'll eventually kick you out of the house. Looks to me that the company who mailed you the list would just want your monthly payments and wait the usual 6-12 months before the bank eventually forces you out.The only way this could be a good deal, is for a title company to record the title under your name, showing exactly how much you owe on the house.

Answer 6

Yes you can purchase a home subject to the exisiting mortgage, however, the loan would have to be brought current or this company maybe working out a forebearance agreement for the sellers and rolling the late payments etc., to the back of the mortgage.  That is the only way I would think they could offer you no money down?

Also, they maybe putting the property in trusts and dispersing the beneficial interest to the buyer? or split between the buyer and seller? Which the buyer would actually be a resident beneficiary, leasing with a first right of refusal when the term of the trust agreement expired.  Usually, for 5 years or less...in which the buyer decides to purchase.or possibly be able to refinance?... If the sellers Mortgage and/or Deed of Trust has a Due on Sales clause, the lender could choose to call the loan due if they found out.the sellers interest has been transferred..It would not be in the Lenders best interest to do so if the loan payments were being made on time, in this day and time that is what they really care about.

Definitely you would want to have title insurance and your own homeowners policy.

I am with the others, it sounds a little to good! Wondering how they get paid, the one that sent the email?

I would love for you to forward me the email to check them out and see how their program works!:0)

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