A property can be purchased at any time that the current owner and a potential buyer can agree upon a price. Saying that, if the bank or lending institution has started forclosure proceedings because of delinquient payments, that may stop the seller from finalizing the sale. If the seller agrees upon a price that is less than the amount owned to the bank, he will need to bring funds to the closing table or get the bank to agree upon a "short sale" The bank doesn't really want to own the property but it does want to get the most out of the sale that they can. There are various programs that help people in distress so it realy does make sense to get a professional to help with this process. So the answer to your question is that YES, the bank will accept selling the house at a loss, but the bank will probably not let you just pick up the current loan payments. Most loans have a due on sale clause that doesn't allow transfering the loan. In today's market, the rates are probably low enough to get a better rate assuming you can qualify.