Taking over a foreclosure mortgage?

[Alex Kenneth Swindell]

Hello Everyone! 

So, I found a property that is a pre-forclosure and is listed for $400,000. I'd like to understand how, if one were to try and assume the mortgage, how that works, and what the options are as far as acquiring the house? Would it be possible to offer to cover the past due default fees, have that be the initial cost then rent it out? Any insight would be helpful. I'm really just trying to get an understanding for what the possibilities are for investors when looking at homes that are in this general situation. 

[Account Closed]

Originally posted by @Alex Kenneth Swindell:

Hello Everyone! 

So, I found a property that is a pre-forclosure and is listed for $400,000. I'd like to understand how, if one were to try and assume the mortgage, how that works, and what the options are as far as acquiring the house? Would it be possible to offer to cover the past due default fees, have that be the initial cost then rent it out? Any insight would be helpful. I'm really just trying to get an understanding for what the possibilities are for investors when looking at homes that are in this general situation. 

That's classically what I have done for years.

1. Get a purchase and sale agreement.

2. Get a Title report

3. Get a reinstatement amount and bring the loan current

4. Pay the seller the cash you are giving them, they move out

5. Receive & Record the Warranty Deed

6. You start making the mortgage payment

7. Do with the property as you wish, rehab & sell, or move into, or put a tenant in, or sell by Lease Option