Let's say that there is a homeowner in pre-foreclosure, with 50k in equity and you pay his back Payments and you take over the homeowner's payments and you get the property's deed. Can you refinance the property after you get the property's deed?
We did this with the caveat that we paid off the mortgage using cash before we refinanced it. We signed a contract with the seller that noone would falsely represent what was going on to the mortgage company and that they were recognizing that they were defaulting on their contract with the mortgage company by quit claiming the property and that we would pay the loan current immediately after receiving title and attempt to satisfy their lien completely within six months. They signed a quitclaim deed and the contract (They had near zero equity after our acquisition and refinance costs). We signed the contract after the title search and it worked out great. Don't put any money into the property until you own it and realize this is about as risky as a real estate venture as there is. Also depending on overall home value, I'm hoping you can give the seller something out of that 50k equity for what sounds like a good deal for you.