By Admin on Jul 3, 2009 in Renting & Real Estate
alison a asked:
I am working with a couple of folks who are getting close to foreclosure. They don’t have the money to buy it out, and I do. I was going to buy them out, make the payments until it sells, then make a deal about splitting up the equity. I have never done this, but this is what I heard. I was at a party where a mortgage broker deals with a lot of foreclosures. He says what he does is negotiates with the people being foreclosed on, they then quitclaim the deed to him and he records it with the county so that title is in his name. He then makes the mortgage current by paying all late fees and missed payments and leaves the mortgage in the name of the initial owners. Has anyone heard of this, if so, where can I find more info as to how to go about it. This is in Washington state, I know all states are different. Anyone who has done this? Thanks!
I am working with a couple of folks who are getting close to foreclosure. They don’t have the money to buy it out, and I do. I was going to buy them out, make the payments until it sells, then make a deal about splitting up the equity. I have never done this, but this is what I heard. I was at a party where a mortgage broker deals with a lot of foreclosures. He says what he does is negotiates with the people being foreclosed on, they then quitclaim the deed to him and he records it with the county so that title is in his name. He then makes the mortgage current by paying all late fees and missed payments and leaves the mortgage in the name of the initial owners. Has anyone heard of this, if so, where can I find more info as to how to go about it. This is in Washington state, I know all states are different. Anyone who has done this? Thanks!
No, sounds shady. Talk to a lawyer, I would not trust the mortgage broker. I’m afraid you may be falling into a scam, be wise.
dmarie_333 | Jul 5, 2009 | Reply
THEY would complete and utter fools to allow you to take over their home and leave them owing a mortgage on the property. As an investor it is perfect IF the bank does not come along and call the entire balance due on sale.
P J | Jul 7, 2009 | Reply
The answer is yes. I am a REALTOR and have gone through this process myself. I paid an attorney $275 to draw up a quitclaim deed because the mortgage was not assumable. You will also have to hire an attorney to draw up a contract to protect the both of you for when it sells.
With the Quit Claim Deed your name is on the title and the mortgage is still in the previous owners name.
Kandy M | Jul 9, 2009 | Reply
The legal way to do this would be to actually purchase the home, secure your own mortgage and then rent the property to the existing occupants.
What you describe above is fraud.
Mortgagemom | Jul 9, 2009 | Reply