gregorygarver.com

[EMT-207]

On Craigslist I am continually seeing postings to take over payments on homes with no credit checks and no down payments. It seems fishy because the monthly payments that are listed are far below the rental market. For example there is a 3BR/2bth home listed with $125,000 left on the mortgage for $900/month. I'm currently renting a small 2bd/1bth for $1100. My initial reaction is that the remaining balances on the mortages seem to be too low. I don't see alot of people caught up in the ARM's unless they bought their home within the last five years. Most of the listed balances are less than $175,000 and the median home price in my town is $300,000. Does anybody have any idea if this could be legit? Please list your experiences.

[RoXaNnA]

i've done a lot of research on this when i got caught up in a problem with my mortgage company and almost lost my house. a lot of the "take over payments with no credit check" ads are for places either going into or already in foreclosure. when you "take over payments", you are simply paying a monthly payment, but it's not curing any original default. the bank or motrgage company can and will still demand the defaulted amount and can and will still auction the house for the remaining balance unless the default is cured. have a good real estate attorney check ANY "take over payments" deal before you sign anything. most mortgages have a clause that prevents another person from simply taking over the debt.

[drewryte]

The first poster is correct. Unless the mortgage involved is transferable (assumable by another party), steer clear of this. There are plenty of pitfalls possible. $900 a month may be the CURRENT payment, scheduled to rise considerably when an interest rate adjusts on an ARM. There may also be deficiencies involved which need to be paid.If a lender discovers that another unauthorized party has taken over the property ownership and is using the financing procured by the first party, it can call the loan due and payable immediately.Additionally, unless a loan is properly transferred to the new owner, you cannot claim the interest deduction on income taxes, since the new owner is not legally liable for payment of the interest. The original mortgage holder is liable.

[GNA]

Two key components in this type of transfer of property would be the existing loan and title to the property. The loan must be assumable and Assumables today are few and far between. A Wrap is only legitimate if the mortgage company has knowledge of the transfer and agrees to it. Due diligence is imperative before taking on this kind of liability. Include title search. Never take on a property without clear title. Do your homework on any property regardless of the intent, primary residence or investment. Teaming up with a real estate attorney would probably be a very good idea if you plan to pursue this endeavor. Good luck!