I've seen some houses advertised as being in 'pre-foreclosure'-will it be MY house if I take over payments? What's the benefit

Asked by Sharon Leggett, Philadelphia, PA Tue Oct 16, 2012

for me?

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Tue Oct 16, 2012
Only if it is an FHA or VA loan and the lender that is currently servicing the loan allows you to assume it would you be safe “taking over the payments.” Most mortgages contain a due on sale clause that calls the loan due if you do not take the proper steps while doing anything that has an impact on the title to the property. Most conventional loans do not allow assumptions.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference:  http://jamessimms.com/
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Annette Law…, Agent, Palm Harbor, FL
Tue Oct 16, 2012
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Sharon,
The term 'pre-foreclosure' can mean many things depending on WHERE you read it. Some places where this term could appear have absolutely no clue regarding real estate and especially regarding the process through which a homeowner in distress must endure before the options available before foreclosure are available.

These challenging home sales are the most complex and convoluted process you can imagine. Yes, there is a way you can take over payments. What is the benefit to you? In today's real estate economy, the likelihood is greater you will be a victim rather than a beneficiary. You would be well advised to understand the very things you are wanting to circumvent through such an arrangement are in place to protect a home buyer. in most cases, such mechanisms result in the buyer being placed in greater jeopardy than before they entered into such an agreement.

If you want reliable, timely, accurate, comprehensive, valid real estate data, you need to have your real estate professional provide you access to your local MLS.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
727.420.4041
http://RealEstateMadeEZ.us

First Look: http://youtu.be/PumYpkgybXE
0 votes
Sheri Curci, Agent, Newtown, PA
Tue Oct 16, 2012
H iSharon, I do alot of short sales. If you want we can confidentially talk. Dont ignore the Bank if your under 55 years of age.

We can help you bounce back + within 18 months after short sale + your credit will bounce back with a satisfied sale on file.

All the best, John Curci RE/MAX 215-757-2889
0 votes
Philip J. Cu…, Agent, Feasterville, PA
Tue Oct 16, 2012
The first thing you need to do is find a Realtor and work with them on a one on one. Then you will learn the terms and what is taking place in your area I'm not saying that the responses here are wrong but stop and think if you're in Philadelphia,PA it stands to reason that you should be talking to Realtors from Philadelphia but do it in person. If you take advice from you may not be dealing with a person who is licensed in real estate. Please call me at my office 215-725-5700 X49

Philip J. Cunningham Sr
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia,PA 19152
215-725-5700X49
Web Reference:  http://www.GreatPaRE.com
0 votes
Ron Thomas, Agent, Fresno, CA
Tue Oct 16, 2012
As Annette pointed out; you cannot "take over payments" ; because the house is worth much less than the total of the payments, but the Bank is owed that much.

People have been trying to find shortcuts or ways around the system, for several years now; it doesn't exist; because the missings money, the difference, has to come from somewhere.

If a Buyer wanted to pay the difference in CASH and just assume the debt; aside from being stupid, (the buyer would be paying much more than the the house was worth,) the Appraisal would have to be less than 20% of the Value.

The Appraisal keeps the Buyer from paying too much.

Talk to a Realtor about helping you: The Buyer's Agent is paid from the Escrow and costs you nothing.
0 votes
Mike Rosania, Agent, Philadelphia, PA
Tue Oct 16, 2012
I agree and disagree with the other 2 answers. I would say definitely a short sale. I dont agree with Hail Mary pass etc. Have you seen the latest foreclosure numbers, it's not because banks want to foreclose, it's because they want to sell "pre-foreclosure"
0 votes
Annette Levi…, , New York, NY
Tue Oct 16, 2012
You never take over payments. You always need the deed to be changed into your name when purchasing a house. You can check to see if the seller's mortgage is assumable, but they may owe more then the house is worth.
Hire a buyers' agent so that you have someone on your side.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Tue Oct 16, 2012
Pre-foreclosure means it is a short sale house with a more appealing name to those looking for perceived deals. They are still a short sale which means they will be long and frustrating and they may not go through. Unlike some short sales, there is no impending foreclosure auction on the horizon, when they use the term per-foreclousure it tells me the owner is throwing the Hail Mary pass to avoid the foreclosure auction in the near near future. These often get offers made on them but the bank just goes ahead and forecloses which means your purchase is not going to happen.
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