Pay Nothing, Assume Everything

Pay Nothing, Assume Everything

Thought I would post this just so you can get an idea of how you can purchase a foreclosure property with no money down and without great credit.

There is also a video version of this article at:
http://nomortgagepayment.net/no-pay-assume-all-vid/

PAY NOTHING, ASSUME EVERYTHING

There are lots of foreclosed properties on the market today. The real estate market is flooded with these types of properties and there are a lot of other properties that will be foreclosed on in the years to come. Until the old mortgages run their course through this broken system, people are still going to lose their homes.

Many individuals don’t know how to take advantage of the current real estate market because they feel as though they do not qualify to get approved for a new home loan. People want to take advantage of these opportunities but they are being told that they don’t have the cash or credit to make these real estate purchases. There is a way for people to purchase a property without having great credit and without putting any money down.

Don’t give up! There is a market for properties that have been foreclosed on. Foreclosed homes are at an all time high and that means more properties to get at a low cost. There is a way for people to purchase a property without having great credit and without putting any money down.

How can you maximize your opportunity to get a foreclosure without any credit and no money down?

The answer lies in what is called an assumption

An assumption is exactly what it sounds like. It is when someone assumes your mortgage and takes over making the payments. Assumptions are great for buyers who want to purchase a property with no money down and you don’t need any credit to get an assumption.

There are 2 types of assumption:

1. Simple Assumption: This is when a homeowner remains legally liable for the mortgage even after sale of a property. Your mortgage is not eliminated simply by selling your property and having a new buyer assume your mortgage payments. You are still obligated to your original mortgage agreement. The mortgage is assumed not deleted. A simple assumption is when someone has intervened on your behalf and agreed to make your mortgage payments for you. The seller is still responsible for the payments even though you have sold the property. This is great to know for the buyer but may not be as attractive to the seller who still has responsibility for the mortgage payments even if you default on them. That’s where you can tell them about the second type of assumption.

2. Novation Assumption: The second type of assumption is frequently called novation. A novation is when you substitute one party in a contract with another party. This is when you put the liability entirely on the new buyer. The seller obtains a written agreement from the lender stating that the homeowner no longer has any responsibility for the property and the accountability falls on the new buyer. A novation does expose a buyer to a lender’s approval criteria such as credit information and income qualifications. They are also expensive and many lenders do not like to deal with a novation because of the risk.

You should avoid simple assumptions and deal only with novation assumptions whenever possible.

Here is a simple way for you to choose which assumption to try to acquire: if you have great income credentials and fantastic credit, go for novation but if you have suspect credit and would not qualify for a loan with your current financial situation, always use a simple assumption.

Now that you have learned about the different types of assumptions, you should now go through these steps so that you are able to get a foreclosed property with no money down.

Go to the County Clerk’s office or go online for your County Clerk’s information. Search for and look through the list of properties scheduled for foreclosure. It is better to go to the office because it is always better to get to know who works in your County Clerk’s office especially when you are looking to get information from them. Make sure that you check your County Clerk’s office to find out when the new foreclosure sales notices are posted.

Go to the property owner and discuss with them taking over their property using an assumption. Most troubled property owners who are facing foreclosure will see this as a reasonable option because it allows them to clear their record of payments that are past due and will keep their credit clear of any potential foreclosure being put onto their report. Take the time to explain this completely to the property owner.

Check with the lender to make sure that a mortgage on a specific property is assumable. This is important so that you won’t get caught in a situation where you are making an assumption about a mortgage that is not assumable. Ask the lender for a loan assumption in writing. If the mortgage is not assumable, the lender might agree to the assumption despite what any of the mortgage documentation may dictate. Make sure that you take time and make certain that an assumption is ok with the lender by getting the assumption terms in writing.

Make sure that you ask for an assumption without qualification. This is where you can assume the mortgage by showing that you have enough payments in your bank account available. You should make sure that you have from 3-6 months worth of payments that are accessible in your account.

Have a contract agreement written up to purchase the home through a loan assumption addendum. There are specific state approved forms for this. The current owner of the property should sign your contract and then you need to have it sent to the lender. When the lender approves the assumption escrow can be opened on the home.

Go to a title insurance company and apply for a title. Once you pay some fees for the title, the title is then issues and you can close your deal for the property.

You then have to go to a notary and complete the purchase. For this portion, you will want to have the previous owner there with you just in case something may occur.

Next, enjoy your new property that you received with no money down!

Now instead of spending the money that you had in the bank on a down payment, you can actually use that money for your leverage in getting another property the exact same way!

Have a good one and hope this information helps you!

No Mortgage Payment

http://nomortgagepayment.net

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Great Info

Thanks for the info.. Will definetly look more into it.

Josh

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Josh

"The best is yet to come."

"Never let someones opinion become your reality"


where have you been for the

where have you been for the last twenty years


On a simple assumption?

With the simple assumption, since all legalities stay with original owner, I am guessing you do not go to the bank, and get the approval from the bank? Since my credit is toast, this is the only option of assumption I have.

If you do this "hostile takeover" type of simple assumption, putting a lease option buyer into the property-how does the title to the property go from legal title holder from the bank, to my lease option buyer at the end of the contract?

Any help would be appreciated.

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Dream High-Strive for the Stars-Let no one steal your Dreams

StacyKae



We have been doing

"subject to" deals since 2004. Like them a lot, but in this market you need to make sure you can RTO to cover your monthly. (and keep a watch on your values in case it declines more)

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Always Looking to Acquire Houses | Always Looking to Amaze Investors


wow thanks for that info

wow thanks for that info very helpful!!

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For thou, O God, has proved us thou hast tried us, as silver is tried. Thou broughtest us into the net, thou laidst affliction upon our loins. Thou has caused men to ride over our heads, we went through fire, and through water, but thou broughtest us out into a WEALTHY PLACE. Psalms 66:10-12


Rigth on

Nothing new here this is a subject-to deal in todays market, You can contact the bank, to get the correct bal on payments. the chance a bank will foreclouse on you are low as long as the payment is made on time,there not going to forclouse on a performing asset.Just make sure there are no other liens out there, in other words do your due diligence any other cya you need to be safe. Then roll this over to a Option to bye, 12-24 months get a tenant in there to make payments, and down the road to have cleaned up there credit to be able to purchase the property from you for a nice $$$ a win-win for everyone. Remember your just the midddle man in the whole thing.You help the seller out of a bad situation, and help someone who the banks at the time wont help, to the american dream owning a home its a win - win for everyone....

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""Allways thinking outside the box""
www.beaver-creek-realty.com


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