Foreclosure in Austin>Question Details

Adriane_ajs, Home Buyer in Austin, TX

Can someone who's house is about to go into foreclosure, deed their house to me, and if so what will I need to qualify?

Asked by Adriane_ajs, Austin, TX Tue May 15, 2012

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You won't need to qualify for anything...the owner can simply deed the home to you. Since the mortgage won't be transferred to you, you will own the house and the seller will own the mortgage. If you know how to do this properly, it could be a win / win scenario. I do these quite often and have found this to be an effective way to invest.
0 votes Thank Flag Link Tue May 15, 2012
Yes, they can. As stated in previous answers, the mortgage will still be in default and subject to foreclosure unless you pay all the arrearages. So depending on how far behind the mortgage is, you may have a good deal if there is equity in the home. I do this very same thing quite a bit in my real estate business. There are a lot of bases that will need to be covered if you want to go through with this and do it successfully. If you are seriously considering doing this, I can give you some pointers or I can put the whole deal together for you for a small fee.

Either way, good luck to you!

Randy Stevens
512-507-3200
randy@StevensRES.com
StevensRES.com
0 votes Thank Flag Link Tue May 15, 2012
No offence, but not likely.

Most mortgages are Not assumable mortgages. which means you cannot take over payments.

You can BUY it out right, for the pay off amount, but take over payments, MAY be loan fraud.

Contact a local Real Estate Attorney and Professional Realtor

Good Luck
0 votes Thank Flag Link Tue May 15, 2012
You need to call me at 512-739-0457. There are many moving parts in these situations, and I can offer you some guidance.

Peace in your home,

Doug Vogelsass
REALTOR :: Agents for Change Real Estate
cell :: (512) 739-0457

10% of our net agent fees at the closing of our client's property will be donated to a charitable organization of their choice. We do this with ALL clients. This is our way of expressing our appreciation to both our clients and the worthy causes dedicated to the betterment of our communities.

9600 Escarpment Blvd :: Suite 745-75 :: Austin, TX :: 78749
Sponsoring broker :: David Komie, Attorney-at-Law (License# 584762).

http://www.trec.state.tx.us/pdf/contracts/OP-K.pdf
Texas Law requires all real estate licensees to give the above information about brokerage services.
0 votes Thank Flag Link Tue May 15, 2012
They can deed the house to you but the mortgage and liens attached to it do not go away. You would be repsonsible for these and if the mortgage is not brough current, the house gets foreclosed no matter whose name it is deeded into.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue May 15, 2012
This sounds very risky to me.
Possible yes, but why would you want to do this.

Make sure to hire your own lawyer to review all documents in this transaction and pay them to advise you.
0 votes Thank Flag Link Tue May 15, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Most loans have a clause in them called the Due On Sale Clause which says that if the house is sold or changes hands the loan must be paid in full ASAP. If you are deeded the house the lender will expect the full payment of the amount still due in the loan. You can not transfer the loan to someone else without the lenders approval so this transfer will not stop a foreclosure procedure and would just make a bad situation worse.
0 votes Thank Flag Link Tue May 15, 2012
Hi Adriane_ajs,

Yes, they can Deed the house to you but if the loan(s) attached to the property is not paid and brought current, the lender(s) will still foreclose. If you don't want them to foreclose, you will need to bring the loan current and keep it current.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Tue May 15, 2012
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