Posted by Scott on October 08, 2003 at 23:33:40:
Jason,
Ask who the financing is with. You can call them and ask them if the loan is assumable. If it isn’t, just ask them if they will make it assumable!
scott
Assuming a mortgage - Posted by Jason
Posted by Jason on October 08, 2003 at 21:28:15:
I just got a call from a gentleman who is going to be foreclosed on. The payoff of his mortgage is 62K, and it is worth roughly 90K. He just wants a couple thousand and be done with it. I would buy it outright, but I don’t have the 15-20% needed for the loan as I have no verifiable income to get a higher LTV loan.
My question is, can I just assume the mortgage and give the seller some cash and be done with it? Not sure if the mortgage is assumable, but wouldnt’ it make sense for the bank to allow the assumption of mortgage in order to get a payer with a high credit score and the ability to pay?
Thanks in advance!
Jason
Re: Assuming a mortgage - Posted by David G.
Posted by David G. on October 10, 2003 at 15:53:58:
Before you start giving money away, find out if the home is IN foreclosure or PRE-foreclosure. If its in pre foreclosure, that is, that he can still pay the arrears to the bank, then you can negotitate with him even if the loan is not assumable. Another thing you must know is how much in arrears is he. Is there any other liens on the home, taxes, etc.
This situation has the ingredients to do a [subject 2 deal/.
Re: Assuming a mortgage - Posted by Desiree
Posted by Desiree on October 09, 2003 at 04:07:33:
There was an article I just read here I think. I said you can get the deed from the guy while nego. with the lender to not forclose on the home, by doing a forbearance. The loan stays in the guys name (there is a contract the old timers use as I’ve seen it, that the guy signes that says you are taking over the mortgage). It takes some skill but it can be done. With that, you make the payments, he walks away from the home with a little cash for his trouble and you have the deed without getting a new loan. That said, I’d check title to see if the guy has any other liens you may not be aware of.
For instance, I had a sweetheart deal myself, or so I thought, till I had the attorney do a title search and it came up he’s got a Federal Tax Lien for about $25,000 and unpaid property taxes for 2 years. Sure I can negoiate with the IRS that I’m not the one or see if they will settle for a smaller amount, it can take a few months, or I can find another proeprty without the headache. Since I’m new to investing, I’m finding one without the headache. When I’ve made a little money have more deals under my belt I may take a deal like that and work it till it comes through.