Foreclosure in Rio Linda>Question Details

Maria Flores, Renter in California

I rented a home in July of this year and learned recently that is in foreclosure. The owner wants me to assume the loan and pay him off $20,000.

Asked by Maria Flores, California Wed Nov 17, 2010

Is this a difficult process? The home is perfect for me, but I filed chapter 7 this year and don't think I will qualify for much of anything at this point. Can you give me feedback on this?

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Answers

6
Maria, Each of the agents have provided you with information that is all correct.

1. Assumable loans are rare these days, so verify that the loan is indeed assumable.
2. With your recent BK filing, you more than likely will not qualify for a loan for another few years, possibly 3 to 5 years. Meet with a reputable lender to see when you will qualify again. Since you are in Rio Linda, I recommend Eddie Fairchild of Summit Funding at (916) 504-9636.
3. Do not sign any paperwork without professional representation from a REALTOR and reputable ttle company.
4. DO NOT give up any money with the intention of potentially owning the home.
5. Divorce the property. Be prepared to leave the property. From a professional vantagepoint, and based upon the information you have provided, the circumstance is not leaning in your favor.

With the holidays upon us, you may want to think about being settled and look ahead. Start looking for another property to rent, and cut your loses now rather than allow any more time to go buy and watch your hard earned money go down the drain on a property that has no interest in you. Sorry to deliver the message so hard, but I'm just the messenger, by profession I might add! :)

My best to you!
0 votes Thank Flag Link Thu Nov 18, 2010
Mariait is not a difficult process but I see one thing that may be a problem. To assume the loan you have to make an application with the current lender and if your BK is open there is no way you will be approved. If the owner just wants you to make payments to them and come up with 20k up front tread very carefully and get a real estate attorney involved.
0 votes Thank Flag Link Thu Nov 18, 2010
This can be done. Use a reputable, well known title company. A title company is a 3rd party that will help make sure everything is done according to the contract. I recommend Stewart Title of Sacramento.
0 votes Thank Flag Link Wed Nov 17, 2010
yes. it is a difficult process.
0 votes Thank Flag Link Wed Nov 17, 2010
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Do not do anything like this without the guidance of a realtor and legal/financial counsel. Someone in my neighborhood agreed to a deal like this, thought it was worked out, (moved in and lived there for years) only to find out recently that the seller declared bankruptcy and the house, large down payment and expensive improvements are all GONE. Be extremely careful and do not try to do on your own. You need the protection of the escrow process and trusted/competent professionals to verify title and make sure that you legally get what you pay for. Good luck!!
0 votes Thank Flag Link Wed Nov 17, 2010
Watch out, not many loans can be assumed and there usually is at least a 2 to 3 year period to wait to be able to obtain a loan after filing a chapter 7. I would suggest that you meet with a competent lender or mortgage broker and don't pay the seller anything without going through the proper escrow so they are not trying to get money out of you and then "flee". Federal rules will keep you from being put "out into the street" depending on how long your lease is. Best of Luck. RondaLea in Arizona
0 votes Thank Flag Link Wed Nov 17, 2010
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