Home Buying in San Diego>Question Details

Ashley, Home Buyer in San Diego, CA

Is it safe to take over someones mortgage payments?

Asked by Ashley, San Diego, CA Sun Aug 31, 2008

I have seen advertisements about taking over mortgage payments with no down payment or credit check. Is this something that is really possible and is it smart to do?

Help the community by answering this question:

Answers

9
Ashley,
Please call my customer service on Tuesday 619.521.3478. Mention my name and give them the property address. They can pull all of the open trust deeds & vesting deeds for the current owner, for free so you can see who actually owns it. You should also look over the trust deed copies they send you , so that you will know what specific loan & the terms you would be taking over. If you assume the mortgage without getting a deed to the property, you have no interest in the actual home.
A lender can call the loan due on a sale, assuming you are taking the property via a deed-aka "subject to", however, that is not as likely, if you keep the payments current. There is always a risk with this type of purchase so you should get a title report prior to buying this way (I can help you with this), so you will know if there are any liens, suits, judgements etc. on the property. You will want to inspect the home to make sure you know what you are getting and see the property profile my customer service could send you for sales comparables. Please be extremely careful if you decide to do this type of purchase. You must also see if the profile we send you indicates any notice of default or notice of trustee sale, since this would affect your decision. Please let me know if you need more information or need a referral to a Realtor, home inspector or appraiser.
1 vote Thank Flag Link Sun Aug 31, 2008
Hi,

You can't tachnically assume a mortgage with out qualifiying with the lien holding lender. And many loans aren't assumable. There are investors and buyers that do "take over mortgage payments" though. This is often call buying "subject to". Meaning you are buying the property subject to the existing mortgage. "Subject to" buyers and investors have the seller deed owneship of the property to them, and they start making the mortgage payments (and property tax payments, HOA, etc...).

However, the lender has the night to call the loan "due on sale". Meaning if they find the property title has been transfered, they have the right to ask to have the loan immdiately paid off. However from what I understand, lenders rarely do this if the mortgage is being paid on time.
1 vote Thank Flag Link Sun Aug 31, 2008
You really need a copy of the mortgage, if the seller wont furnish it, you should have atitle search done and have that and the deed reviewed. you will want to see if there are any liens on the property as well. Yes there are some assumable mortgages out there where yes you will have a closing and the property will be deeded to you, the old owner may or may not be released from the mortgage but will be released from th edeed. Have the whole thing reviewd by an attorney so you know you are not being scammed. pay nothing up front.... good luck Ashley
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Oct 1, 2008
Ashley,

I agree with everyone when it comes to doing your DD before taking over the payment but I do not feel that the process is RISKY at all. If you are concern about having the lender activate the "Due on Sale" clause, the easiest way to get around that is to setup a servicing account through the title company. You make the payment to the title company and the title company will make the payment to the lender. I have done "Subject-To" transaction before and had all the payments sent directly to the lender and never had any problems.
0 votes Thank Flag Link Wed Oct 1, 2008
Ashley,

By now you probably understand you are on very shakey ground......our recommendation is to be revisit this angle.

Good luck,
The "Eckler Team"
0 votes Thank Flag Link Mon Sep 1, 2008
Hi Ashley - Very simply...I do not recommend you do this. This market has many scams due to desperate people in desperate situations. Years ago, this was a common practice. It's called a wrapping a loan. Sometimes lenders allowed this and some not. Today not. There are many scenarios to this question. If it was me, I wouldn't do it. The risks outweigh the benefits by a long shot. If you decide to move forward please get legal advice. Small price to pay to keep your investment safe.
Birgit Anglin
Windermere Exclusive Properties
Encinitis/LaCosta Office
0 votes Thank Flag Link Sun Aug 31, 2008
Hi Ashley,
Assuming a loan has not been something most people would consider in today's market, with many owners who bought in recent years owing more than what they could sell it for now. Is it a "for sale by owner"? I strongly encourage you to work with a Realtor if you are not doing so already. It's important to know the value of any property you are considering buying and the terms under which it is being sold. Buyers typically do not have to pay any Realtor fees unless you hire them to find properties both on or off the active MLS. Usually sellers pay Realtor fees, so be sure to get some help. I have access to property values and how much is owed on properties, so if you'd like to contact me, I will gladly assist you.
0 votes Thank Flag Link Sun Aug 31, 2008
WOW, if the lender finds out many will demand the loan paid in full, The agreement is between lender and property owner NOT you. You have no ownership in the property, nothing can be conveyed to you till paid in full.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Aug 31, 2008
bad advise...not true! THere is a due on sale clause our neighbors and friends wanted to back home to New Orleans so badly and are in their 70's we are friends as well. They didn't want the hastle of waiting to sell...she has a property mngmt job waiting for her and they will be rent free and able to travel and do things they used to do when she worked for this same place..they want to spend and live freely and have become like family in the 7 years since huricae ike but they never wanted to stay here..always go home..we reap the benifets...you have to make sue to get the Deed of trust and make sure its in order and no loans on house and all is proper but this is a home owners dream. We gave them 3 grand to move and we have to paint and do carpet, of course, they smoked so there's no deal making, it's as is..but it can be done and we have been so blessed! All our landscaping is gorgeous. We have the prettiest house on the block if you ask me...IT IS POSSIBLE!
Flag Mon Apr 16, 2012
That is a load3d question. I would make sure to do a search and hold title and see if anything is secured against the property, get a GAP endorsement, and really find out what the property is worth.
0 votes Thank Flag Link Sun Aug 31, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer