Posted on: 10th Mar, 2009 05:16 pm
I am thinking of purchasing a home where the homeowner is facing foreclosure. Payments are in default 3 months and the homeowner is thinking of filing bankruptcy. I have been asked to sign a contract to purchase the property; however I am not in the position to obtain financing. The owner has agreed to leave the loan in his name, I make the payments and we sign documents giving ownership of the house to me. Is this legal? Basically, I would be renting with an option to purchase, except the documents would indicate me as the owner as long as I keep payments current. Any adivce would be appreciated.
hi tnbilly,
as the property will be transferred in your name, the lender may not let the mortgage remain in the name of the original owner of the property. there are chances that the lender would ask you to refinance or assume the loan. i would suggest you to speak to the lender before taking any decision.
thanks
as the property will be transferred in your name, the lender may not let the mortgage remain in the name of the original owner of the property. there are chances that the lender would ask you to refinance or assume the loan. i would suggest you to speak to the lender before taking any decision.
thanks