What are the thoughts about taking over mortgage payments on a pre-foreclosed home until you are ready to purchase home?

Asked by Debbie, Tampa, FL Tue Jul 31, 2012

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Eric Cavanagh, Agent, Jacksonville, FL
Sun Aug 5, 2012
Absolutely not. Never a good idea. The house will sell for less than the payments you'd be making. There are other ways to get into a property before closing on it, but none of them are advisable Pre-closing occupancy is always sticky because so many things can go wrong. You would be better off in a short term rental elsewhere while waiting for this to close. While you are waiting, a better deal might come along. Call or email me for some other strategies....

Eric Cavanagh
Keller Williams
0 votes
Jeannette Ba…, Agent, Brooklyn, NY
Tue Jul 31, 2012
Sounds good as long as the bank is in on it and understands what's going on. Or if you can pay what owed and catch up make sure to have a lawyer draw up papers and have the owner sign over the deed to you in this event. I hope my answer was good. Wish you the best!!!! Jeannette Batsikas
0 votes
Frank & Shar…, Agent, Fleming Island, FL
Tue Jul 31, 2012
Hi Debbie,

There are many variables to answer this question.

Are you going to catch up and make the payments current again? Otherwise the bank will not accept them.
Is there a sale date? If so, it may be too late to do anything.
How many liens are there? If there are two or more (include HOA, PMI), successfully negotiation chances are more slim.
Will the Sellers agree to sell even if their deficiency isn't waived? If not, the deal can fall apart at the last minute.
Are the Sellers willing to contribute any cash contribution if one or more of the lienholders demands it?
Are the Sellers willing to sign a Promissory Note for the deficiency if asked?
Is there a chance the Sellers might decide to take bankruptcy during the sale and pull the home into it where it can't be sold?

It's not an easy answer, as you can see. I recommend talking to a real estate attorney to explore and understand your options and pitfalls before making any agreement with the Seller.

Hope you found this helpful.

Best regards,

Sharon Alters
Coldwell Banker Vanguard
0 votes
Great advice Sharon.
Flag Wed Aug 8, 2012
Howard Greis…, Other Pro, Jacksonville, FL
Tue Jul 31, 2012
Hi Debbie, my feeling is know everything you can about the existing mortgage i.e.,
> How many payments behind and by how much
> what are the monthly PITI
> Did the current owner file bankruptcy
> What about the deed, who get's it and/or when?
> And the list goes on.

Bottom line, be as prepared as you can be, and probably the best thing is to have an attorney that is on your side (as I am not one) review all that is being considered. And remember, the lender has a right to call the loan due anytime the deed trades hands. The argument against that these days is that as long as the payment is being made the lender doesn't care, they need the money.

If you'd like to talk more about it I'd be happy to. I'm actually doing this myself right now, and have a friend who has done hundreds of these in Georgia.
0 votes
Howard Flasc…, Agent, St Johns, FL
Tue Jul 31, 2012
I would need more information to be able to talk about it. Shoot me an email or call me...
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