House take over payment

A reader asked me recently what I thought about buying a house take over the payment and move in.

This is called buying subject to the existing mortgage. You buy the house when the owner deeds it to you. Now you are the new owner. Many people don't realize that the loans that were on the house remain on the house after the house ownership is deeded to you.

Typically the seller will have an existing loan. Nowadays the loan may equal the fair market value of the house, or even be over it. If you find a house where the loan equals what you think the house is worth, why not offer to buy the house subject to the existing loan?

Many people don't know this can be done. The real estate purchase contracts that many real estate agents use don't have boxes to check off for this. Write it in.

Buyer buys house subject to existing loan — works great. This is a no money down or little money down house purchase with no qualifying and no bank loans.

Now that you own the house, you can start making the payments. You will need the seller's social security number and access to the bank's automated system for making sure you know the balance due and how much is owed and so forth.

Most loans have a due on sale clause. Technically the lender can accelerate the loan and make it all due and payable as soon as they hear of the transfer of ownership. I don't know of anyone who has had this happen. Especially today the last thing a lender wants is a non-performing loan.

More importantly, you want to someday assume the loan, just to get the seller out of the picture. I have heard of people doing this without filling in any financial information. I've done it myself. Just notify the lender "I own the house, send me an assumption package" and then I just fill in my name and address and sign it. I have never provided detailed financial information. I photocopy the deed and send in the package. Some lenders require you to live in the house and make payments on time for 6 months or 12 months and then they will let you assume the loan with no qualifying.

Of course, in today's world I'd be very careful about assuming a loan. Has this info been helpful? Subscribe to my powerful email list and get access instantly to my 25 page report Keep Your Home along with email tips you won't hear anywhere else on avoiding bankruptcy, lowering your payment without getting a new loan and more. Privacy is assured and you can unsubscribe anytime you want.



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19 Comments on House take over payment

Anne Johnson @ 10:17 am:

I would like to sell my house and just have someone take over the mortgage…
How do I find buyers?

admin @ 9:20 pm:

If you advertise no money down that will help. "100% financing, no bank qualifying" these are magic words in today's world. They will help you sell your house. You can do a credit check and qualify the person yourself. You deed your house to a respectable buyer who will live in the house. Or you can do a lease-option or land contract which let you transfer title after the buyer has done a certain number of payments. This gives you a greater assurance that you don't transfer the title immediately and then have the buyer stop paying on the loan.

mark @ 10:09 pm:

I need to take over payment of a house in arizona… anyone?

We sre willing to assume payments on home-if it has the right things required by our faminly. How do you begin this process? @ 5:04 pm:

what you do is respond to ads where people are selling "no money down" houses and see if you like those. You can also contact people on Craigslist who are looking to rent and ask them if they would be open to your taking over their payments and getting title. And then you can put your own ads in "I buy houses" and have sellers contact you. It is a bit of work but it bears fruit. I have bought many houses this way.



Tanya @ 11:36 am:

Hello I am interested in taking over a house payment. I am a single parent I have good credit but the banks are giving me a hard time with a loan. Due to the mistakes of everyone else in the housing market I am suffering.


This is a smart idea if you want to own a house. Buying "subject to"  existing loans. I teach this in my Mortgage Relief Formula home study course.




michael cintron @ 5:33 pm:

My wife and I would like to take over payments on a home we can call home..due to our credit and the scamming that companies do our credit went bad ..In todays world perfect credit will get you a home …my credit is not perfect but the reality is that I can afford a mortgage payment but I don't have that chance because banks do things by the book..In the real world I would be able to take on the responsabily on owning a home…. I have two daughters and both my wife and I work.. I've been in my empoyment going on 12 years now making decent money..for anyone wanting to help us it will be much appreciated .. thank you and god bless……

kim davis @ 1:32 pm:

Did you ever find someone to take over payments on your hom?

chantal @ 2:23 pm:

i want to take over payment on my son house cse i need a tax break. how do i do it

chantal @ 2:24 pm:

i want to take over my son s house cse i need a tax break

Debora De Jesus @ 10:30 am:

looking to take over a house payment i'm self employed paying 1200.00 a month for an apt. my credit is not good and thats whats stoping me from getting a home . any one that know's of something please e-mail me

Joe sheddan @ 7:58 pm:

i am looking for a house in the south grandpraire texas and mansfield texas area to take over payment on please e-mail me at thanks

Sue @ 12:00 pm:

I am looking for a take over payment nice 2 stories house with 4 bedrooms 3 baths with walk-in showers and big master bed room upstair with a walk-in closet in the master bedroom, a home with a big kitchen. I need all the bathrooms and kitchen granite counters, hard tile floors in the kitchen and bathrooms floors. And i am looking for a take over payment home in these three cities in California, cities of Brentwood, Oakley, or Suisun City. I've been paying $1,500.00 a month for a 4bedrooms and 3 baths home for 2 years now. I don't want to buy rent to own with 100% owner finance like my landlord wants me to do in January of next year 2011 that's the end of my rent to own contract to purchase. I'm a nurse, and i'm making $60,000. a year, and i have good or fair credit, for all 3 credit bureaus, my score is 659, 633, 610 i've been in this field as a nurse since 1997 and on my current and same job for over 3 years now. My job, tax returns, pay stubs and any other informations are available upon your request. My phone number is area code (650)771-0226 you can call me at any time. I'm also requesting a home that was built in 1998 to 2009 Again, i am looking to buy a home by January of next year 2011. Thank you very much and looking foward to hear from you.

jackie @ 2:42 pm:

Looking to take over a house payment in Plano texas. Work for the government and will be moving in June. I pay rent now.

Honore Investments @ 6:51 am:

We are Florida-based real estate investors and we are ALWAYS looking to buy more homes using this technique. If you want to sell any Florida property, we want to buy it.

Lucine Alsaigh @ 12:41 pm:

My parents would like to take over payments on a home in El Cajon, La Mesa, Spring Valley, CA and own it after they can prove they can make the payments for 3 months or more. They are getting Social Security and brother and sister are working, all verifiable income, they are going through a forclosure right now because their monthly payment turned into an ARM and their payment went from $1550 to $3100 and couldn't afford it any longer. Please please, if there is anyone who knows of someone who would like to do this. Please email me back asap! Thank you so much and God Bless.


renee @ 7:12 am:

Michael Cintron, I live in Milwaukee and is unable to hold on to my home. Husband has not worked steadty since his job went out in April of 2009. If you are interested in living in Milwaukee, Wisconsin. Reply back.

kevin hall @ 2:57 pm:

looking to take over payment on a house in pembroke pines fl
anything available from your inventory?

john weeks @ 5:44 pm:

I presently live in Shreveport, La and I am looking to take over payments on a very nice home with acerage in the area. Would like the home to be no more 10 years old at the most (but this would depend on the look of the home in question).

Deborah Wilson @ 6:21 pm:

hi name is Mrs.Deborah Wilson looking to take over a house payment of bout 5 to 6 beds room u can call me at 773-699-6049