The answer is YES! This happened to a friend of mine. I was able to help him out of the foreclosure by hooking him up with a hard money lender who refinanced his property. The kicker was, the interest rate on the loan he assumed and had been paying was almost twice the current mortgage interest rate (which means the bank was making a ton of money on this loan) and the property had equity, so the bank was fully secured in case he defaulted on the loan. So, caveat emptor, you take a risk when buying subject to existing financing with a due on sale clause.
If you decide to enter into this type of transaction, make sure you have an exit plan in case the lender calls the loan. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty