ANSWERS: 3
  • The people who take over the payments of a property owner will only accept properties that are not "upside down" (you owe more than it is worth). If your balance is approximately what they offer, they will take over your payments, but you will no longer own the property. You will most likely have to move. It is usually a scam to buy your property for the lowest amount possible. For instance, you own a balance of $100,000 on your house, I will take over your payments, if you will pay me somewhere between $1,000 and $5,000. The trick here is that you have to move out, and find a rental, or agree to pay me rent in the amount of your previous payments, only I now own the house, NOT YOU.
  • I have seen certain examples of this but you have to take a good look at what you are getting. I had a property I was looking at that this lady had been paying on for about twenty years. She had lost her husband and therefore her means of support. Apparantly she had missed a payment in her first year but made it up the following month. The crooked real estate guy took her payment but took out a late fee and various other questionable charges. Because of this, every subsiquent payment went toward the previous delenquent fee, resulting in guess what....another fee because the current payment was then late as well. This went on for decades and he compounded interest on the late fees. Long story short (as if possible by now) She had taken less than $1000 off her principle in the last 20 or so years. The real estate guy was gonna take it back from her and leave her with nothing. Watch out for realtors. I think about as much of them as I do insurance agents. They are parasites living off others. But to answer your question, there are ways in which this is legitimate due to the changing interest rates and property value fluctuations. You can come out on top if you can afford to hold on to it until the right time to sell.
  • This is also known as a "Subject to ..." program (subject to the existing mortgage). It is legal in some States, not in other jurisdictions. If a person has a property (with some equity) that they REALLY want to be rid of, AND they don't want to wait for the ordinary months and months of waiting, it can be done. Be advised, however, if the new buyer fails to rent the place (their usual goal) and fall behind in the mortgage payments ... it goes on YOUR credit history. If you don't care, go right ahead and sell "subject to". See what I care. ;-)

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