Buying a Preforeclosure Home

[Grosie]

What is the name of your state? CA

I see alot of ads about homes in preforeclosure and taking over payments for the home. Is this a good idea? I am interested but I don't really know about the process and costs.

[nextwife]

Originally Posted by Grosie

What is the name of your state? CA

I see alot of ads about homes in preforeclosure and taking over payments for the home. Is this a good idea? I am interested but I don't really know about the process and costs.

Most home mortgages have a Due on Transfer clause, so any transfer that does not involve paying off the mortgage is a violation of loan terms for those. Meaning the lender can then call the whole loan due. These are very risky and unwise. If you want to buy, get your own loan, or only use seller finance if the home is free and clear, or there is no Due of Transfer that applies ot the loan.

[Grosie]

I see... Thanks so much.

[LindaP777]

I agree! "Assumable loans" went out in the 80's! The mortgage lender wants to know who they are dealing with! (Who can blame them?)
That being said, you can still get goods deals on a pre-foreclosure. Just get your own mortgage.