Posted on: 28th Feb, 2010 09:04 am
I recently ran across an ad for a condo on Craigs List. I called, and it turns out they are a national company promoting a Quitclaim Deed and taking over mortgage payments for pre-foreclosure properties.
They tell me that:
1. I pay them a $199 fee which includes a listing of properties available in my area in a pre-foreclosure status and all the feeds for processing the paperwork involved in this process.
2. After I find a property for which I would like to move forward, they would do a Quitclaim Deed to transfer ownership of the property to me.
3. I would "assume" payments on the mortgage after they do the paperwork involved which includes only income verification and NO credit check (this is where it sounds fishy to me).
4. When all is said and done, the property would be mine, and the mortgage would be mine.
They tell me their purpose is to provide the current owner a way out of their mortgage prior to their property actually being foreclosed upon which protects the current owner's credit. They also say that this program provides an easy alternative for someone with slow/bad credit to get into a home.
Is this a legal program or a scam. Is it really that easy to get into a home?
They tell me that:
1. I pay them a $199 fee which includes a listing of properties available in my area in a pre-foreclosure status and all the feeds for processing the paperwork involved in this process.
2. After I find a property for which I would like to move forward, they would do a Quitclaim Deed to transfer ownership of the property to me.
3. I would "assume" payments on the mortgage after they do the paperwork involved which includes only income verification and NO credit check (this is where it sounds fishy to me).
4. When all is said and done, the property would be mine, and the mortgage would be mine.
They tell me their purpose is to provide the current owner a way out of their mortgage prior to their property actually being foreclosed upon which protects the current owner's credit. They also say that this program provides an easy alternative for someone with slow/bad credit to get into a home.
Is this a legal program or a scam. Is it really that easy to get into a home?
Welcome tuscaloosa,
Once you assume the payments, you would become responsible for the mortgage. However, as far as I know, these days lenders not only verify your income but thoroughly check your credit as well before lending money. So, I doubt whether or not you would be able to assume the loan without a credit check. I'm not sure whether or not it's a legal program. I would suggest you to research about the company first and then take the right decision. You may even speak to those people who have purchased property from them and check out if they are satisfied with their services.
Once you assume the payments, you would become responsible for the mortgage. However, as far as I know, these days lenders not only verify your income but thoroughly check your credit as well before lending money. So, I doubt whether or not you would be able to assume the loan without a credit check. I'm not sure whether or not it's a legal program. I would suggest you to research about the company first and then take the right decision. You may even speak to those people who have purchased property from them and check out if they are satisfied with their services.