How does move in before forclosure work for housing- TAKE OVER PAYMENTS???
acermill is correct in that you should be very careful. If you don’t know what you’re doing, don’t do it. However, such purchases are done all the time and can work out fine. It’s called a “Subject To” or “Sub 2” transaction. That is, the property is being purchased subject to the existing mortgage. The buyer receives the deed, but the seller remains on the books as responsible for the mortgage. To clarify acermill’s comments: “If you fall for this ‘take over payments’ nonsense, you are asking for trouble. First, the lender specifically disallows such a situation in the original owner’s mortgage documents.” COMMENT: True. It violates the “due on sale” clause. “If the lender finds out, they can call the loan due and payable in full immediately.” COMMENT: True. And that’s a risk. However, especially in today’s market, many lenders are willing–eager, even–to look the other way. Heck, they don’t care who’s paying the mortgage. Better that someone else is paying the mortgage on time than
