I have heard you can take over mortgage payments and deed yourself onto property and the owner deed off. How?

Asked by Webberwise, Belmont, CA Fri Jul 1, 2011

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John Juarez, Agent, Fremont, CA
Fri Jul 1, 2011
You have heard wrong. The lender made the original loan based on the qualifications of the borrowed. That borrower cannot transfer the obligation to repay the loan onto someone else. The owner may be able to deed the property but that can also cause problems. The owner cannot transfer the loan to another party.!!!
2 votes
Mack McCoy, Agent, Seattle, WA
Sat Jul 2, 2011
John, you typed the words right out of my fingers!

WW, here's a common misconception people have about deeds. A deed is an instrument that conveys title. In the same way that you can't have your empty car come and pick you up, you can't convey somebody else's title to yourself - the person that the property was deeded to has to do the conveying.

Similarly, you don't "get people off" the deed. The new deed takes precedence over the old one. The old one is still in the records, this way we form a "chain of title," that we can search to ensure that there aren't any former owners out their with claims to the property.

But to answer your question - you heard wrong. And the scheme that David & Ken correctly identify really requires that the value of the home warrants taking over the mortgage - you don't want to take over a home that's underwater, and if it's not underwater, the owner will likely be better off selling it and pocketing a few dollars.

All the best,
1 vote
Voices Member, , Austin, TX
Fri Jul 1, 2011
@Webberwise - The phrase 'Assumption of Mortgage' is what you're looking for. This is where you acquire title, to a property with an existing mortgage, from the original borrower by agreeing to be held personally liable for paying the rest of the mortgage. You'd have to check your state law to see if this is legal in your state, but even if it is "technically" legal, it's definitely NOT something you want to try.

When banks give you a mortgage loan these days, they almost always leave out the 'Assumption Clause' which would allow the original borrower to transfer the mortgage to another person. But there's almost always a paragraph of fine print somewhere in the mortgage documents that's called an 'Alienation Clause'. What this means is that if the bank catches the original borrower trying to do this, the bank has the legal right to demand PAYMENT IN FULL of the entire mortgage. Since the original borrower obviously doesn't have the full amount (cause if he did he would have paid off the mortgage), the bank can claim the original borrower is now in default, and start foreclosure proceedings.
1 vote
Lumumba Rich…, Home Buyer, San Francisco, CA
Thu May 16, 2013
so how do I do that what a landlord hasn't been around for 3 years
0 votes
Www.ripbelvin, Home Buyer, 70363
Wed Nov 7, 2012
0 votes
David Tapper, Agent, Burlingame, CA
Sat Jul 2, 2011
Are you talking about assuming the loan? IF so, some loans were set up that way, but not many. It's a sale of the home with the new buyer taking over the sellers current loan. Without knowing more, it's impossible to say.

Your best bet is to show all your paperword to a real estate attorney and let them decide.

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