PreForeclosure home take-over payments on Craigslist. Scams? Possible? (subletting, apartments)

[darkbrownpyt ...]

Originally Posted by islndjak

If you do not know then why not ask, not everything is a scam
BUT BEWARE you are assuming the existing mortgage so if it is an ARM, or interest only with a baloon you get the same mortgage
the company finds preforclosures, you make arrangements to view the property, payments are current or one payment late so it would be like first and security to rent.
You make the offer to take over and if accepted, the bank will do the rest you do not need a credit check, just the ability to pay the rent and proof of income, depending on which state it may take from a few weeks to several months.
If your smart you will have an attorney act as your agent
and do the research for back taxes and liens etc...
if clear sign a Quit claim deed and move in.
BE SMART get an Attorney
And check with the bank if they will accept you.
Once you have the house in your name re-mortgage asap with another source for fixed rates and a lower payment

Have you found any good companies that are legitimate. Looking to get into a home under these circumstances.
ps

[bayarea-girl]

I've seen some townhomes/condos offering lease purchase agreements in the Bay Area and you would have to go through their mgt. company. I trust going through a company than an individual. I'm not sure if a lot of real estate agents are familar with this process in CA. But in GA they use attorneys for this process. I wouldn't take over payments if the place is in default and this is something you can check out with the lender before signing anything. But finding a real estate agent who is familar and has or is currently handeling deals like this would be the best route to go. Agents and or individual owners handle the process in GA.

[Cubancoffee]

Never heard of a lender that would allow a new owner to take over payments for a home loan. And, it seems to me, if it's not your loan it's not your house. Even if you made all the payments, you're not the owner of standing.

[bayarea-girl]

Cubancoffee, they do this in other states. I thought it was crazy when I saw it happening in GA too. But they also do it in Texas and parts of Washington. In other places around the country it is very common. How they do it in GA some part of the money that is being leased goes towards the down payment of the house and I belive they refinance the home into the person who is leasing the place or it gives the person trying to purchase time to acquire a loan by a time of a year or 2 years.

[LizzyNola]

Leave it alone. Don't even go there!

[Topaz]

Originally Posted by bayarea-girl

Cubancoffee, they do this in other states. I thought it was crazy when I saw it happening in GA too. But they also do it in Texas and parts of Washington. In other places around the country it is very common. How they do it in GA some part of the money that is being leased goes towards the down payment of the house and I belive they refinance the home into the person who is leasing the place or it gives the person trying to purchase time to acquire a loan by a time of a year or 2 years.

They may do it but the lease option agreement and process are fraught with potential legal difficulties if anything goes wrong with either the buyer or seller. Just Google it and read what attorneys have to say. I mean the attorneys who aren't trying to sell you a product on lease option strategies. And I'd completely ignore the real estate "gurus" who gloss over the complications and present the best case scenario where no conflicts arise.

[bayarea-girl]

Topaz, I've lived in places and where they offer lease purchases and have done so for years. In my parents time it was very common as well. It is no that difficult of a concept when you think about it. If an owner can't sell their property and might loose it why not try to lease it out to someone that is having trouble with qualifying for a conventional loan? In today's time if you have to sell then you have to be creative. In most cases the person leasing the place has to put down money and agrees to pay a specified amount each month. If the person leasing doesn't make a payment they loose what gets put down and the right to buy the property. Then the owner needs to try to sell at that point or get another similar situation worked out. People who aren't use to this process of purchasing make it more difficult than it is. There are so many states including a lot of condos and banks in California.

Below is some information about the process:

Lease Options - How to Do a Lease Option or Lease Purchase Sale

[Topaz]

Originally Posted by bayarea-girl

Topaz, I've lived in places and where they offer lease purchases and have done so for years. In my parents time it was very common as well. It is no that difficult of a concept when you think about it. If an owner can't sell their property and might loose it why not try to lease it out to someone that is having trouble with qualifying for a conventional loan? In today's time if you have to sell then you have to be creative. In most cases the person leasing the place has to put down money and agrees to pay a specified amount each month. If the person leasing doesn't make a payment they loose what gets put down and the right to buy the property. Then the owner needs to try to sell at that point or get another similar situation worked out. People who aren't use to this process of purchasing make it more difficult than it is. There are so many states including a lot of condos and banks in California.

Below is some information about the process:

Lease Options - How to Do a Lease Option or Lease Purchase Sale

In my parents' time, there were assumable mortgages. Now there are hardly any.

For the OP, here are some links to add to the others given here:

What You Need to Know About Lease Options - John T. Reed

"Lease Option Real Estate" Draws Scrutiny

[bayarea-girl]

Topaz, lease purchases are done differently than rent to own or lease options. Whenever anyone wants to get involved with something like this they should consult with an attorney as I mentioned.

Just like predatory lending there is predatory lease options (pros & cons were also listed in what I already posted). In GA most places doing the lease purchases checks ones credit profile and asks for the prospective buyer to put up what is needed to pay the mortgage. Most of those people just want the cost of the mortgage they can't pay to be paid and they aren't looking to cheat anyone out of their money. These are people that aren't taking savvy real estate courses, just people that thought they need to sell and thought they could and found themselves dealing with this mortgage crisis and can't find buyers other than to do a lease purchase.

Anyone who is well informed can make sound decisions. Not everything is a scam. But it helps to do your homework.

[Tominika]

I am actually currently working with one of those companies that advertise on craigs list. I will be paying the $199 fee for the title and lien search. I figured if it is bogus, then im out two hundred dollars that I may have blown anyway, but if its ligitimate, then $199 was a small price to pay for a situation I might otherwise not have qualified for. I will update after the process and let you guuys know the verdict.