U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > California > Los Angeles
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Closed Thread Start New Thread
 
Old 11-24-2008, 09:12 PM
 
76 posts, read 264,426 times
Reputation: 51
Default PreForeclosure home take-over payments on Craigslist. Scams? Possible?

I know, if if looks to good to be true.....

So what is the REAL scoop behind those people who advertise on CL to take over payments on pre-foreclosures for less than renting? Are they balloon payments, etc..?

Thanks!

 
Old 11-25-2008, 09:59 PM
 
76 posts, read 264,426 times
Reputation: 51
No thoughts.... or is it just that obvious
 
Old 11-25-2008, 10:45 PM
 
11,727 posts, read 23,997,516 times
Reputation: 7104
The house is in pre-foreclosure because the mortgage is in default. So what then? Who do you pay? I don't see why you'd pay the owner if you know the note is in default and I don't see why you'd pay the lender either. Unless the mortgage is brought current, you're going to find the sheriff knocking on your door before long. What am I missing here? You'd get to live in a house fairly cheaply for a few months before you and all your stuff gets thrown out in the street. Is that the only plus?
 
Old 11-26-2008, 08:09 AM
 
76 posts, read 264,426 times
Reputation: 51
apparently, they sell you the house, holding the note somehow, and you catch up back payments. The title gets registered in your name...but not the loan. So, for people who can't get a loan for the necessary amount (for me, a 450,000 is still cheaper than rent when I need 3/2 in an area with awesome schools.) And, you get their equity--- but also the price they agreed to pay, which can be much higher than current prices. But, again, I'm looking for more information than I think I've found so far -- and experiences :-).
 
Old 12-21-2008, 10:13 AM
 
Location: Florida
12 posts, read 83,074 times
Reputation: 27
Default Preforclosure Purchase

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
 
Old 12-21-2008, 11:32 AM
 
1,078 posts, read 2,511,163 times
Reputation: 627
I wouldn't even pursue it. It is too complicated which leads me to believe that you would either:
1.Be overpaying.
2. Get screwed somewhere along the line.
3. Lose all the equity and get foreclosed.
4. Ruin your credit.
5. All of the above.

When real estate transactions are complicated someone is making out like a bandit and someone is getting screwed.
 
Old 12-21-2008, 11:56 AM
 
2,987 posts, read 4,702,121 times
Reputation: 1378
In GA, doing lease purchases and or taking over payments is very common.
 
Old 12-21-2008, 12:53 PM
 
1,078 posts, read 2,511,163 times
Reputation: 627
You might want to call some good realty firms and ask if they have an agent who specializes in preforeclosure sales. That way your risk of getting screwed is lessened tremendously. Use a good agent and get an attorney too. Also get an independant appraisal.
 
Old 12-25-2008, 09:50 PM
 
Location: Austin, TX
4,661 posts, read 8,495,322 times
Reputation: 3006
If the arrangement involves taking over a current mortgage, most mortgages have a "due on sale" clause where the lender could call the loan due if ownership changes hands. Some people say that lenders are unlikely to do this as long as payments are current, but I personally would not want to take that kind of risk if I were taking over payments.
 
Old 12-26-2008, 02:24 AM
 
Location: Malibu/Miami Beach
1,068 posts, read 2,068,554 times
Reputation: 414
Quote:
Originally Posted by finzup2 View Post
I know, if if looks to good to be true.....

So what is the REAL scoop behind those people who advertise on CL to take over payments on pre-foreclosures for less than renting? Are they balloon payments, etc..?

Thanks!
Legal and common in Canada.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Closed Thread


Options
X
Data:
Loading data...
Based on 2000-2011 data
Loading data...

123
Hide US histogram


Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > California > Los Angeles
Similar Threads

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top