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On craigslist there’s tons of homes that are “weeks away from forclosure!” and they advertise to take over the monthly mortgage payment and you can own it. How does that work? What’s in it for the person currently living there? Does that prevent their credit from looking bad with a forclosure? What risks are associated with all that?
My goal would be to actually own the house, and many of these advertisements claim that’s what will happen at the end of the whole deal.
But you’re all right, it would be in violation.
BE careful. Lots of scams out there.
Be sure you get title or iron-clad contract for deed.
The majority of those ads are at best misleading and at worst outright scams. There are very few mortgages today that are assumable by a buyer. Even if it is assumable, you would still have to be approved by the lender as if you were applying for a new loan.
Some people will attempt to sell their home and have the buyer “take over” the payments. In most cases, this is in violation of the mortgage agreement–most mortgage loans have a “due on sale” clause that would require the loan be paid off. If the lender finds out, it could declare the loan in default and accelerate the payments. If the loan wasn’t paid off, then the lender would foreclose.
You could do one of these deals but be aware you are in violation of the loan. However, if you later default, its not on your credit–it is still the credit of the original borrower.
Be very careful if you try to do one of these deals.