How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask RealEstateAnswer Your Own Question
RealEstateAnswer
RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 23938
Experience:  9+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
9540344
Type Your Real Estate Law Question Here...
RealEstateAnswer is online now
A new question is answered every 9 seconds

I reside in California and wanted to find out if it is possible

This answer was rated:

I reside in California and wanted to find out if it is possible to acquire property by saving a homeowner from foreclosure. This is how it was explained to me.

Scenario
Home owner owes $10,000 of behind payments thus in foreclosure, so I come in and offer to pay $10,000 to lender, home owner signs a quick claim thus signing the deed over to me. This way, home owner saves himself from all the negativity of foreclosure in his credit and I assume payments. I have experienced a quick claim process before and it was rather easy. Just want a legal perspective on this.
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good afternoon. The problem with this is that the owner still remains liable on the loan? Why not just buy it from him/her? Is there any equity in it?
Customer: replied 3 years ago.

this is just an example not an actual case, but lets work with there being no equity, reason for not buying from him is that I probably have bad credit or am a business woman. home owner has probably lost job or some other circumstances

Thank you for the additional information. The problem with this is that the current owner is still on the loan and would be liable for the payments, in the event that you fail to make them at some point in time. If so, the home would be foreclosed on and their credit would be ruined. Moreover, they would be assuming all this liability and be giving their home to you, losing their legal interest. Moreover, the owner should always read the terms and conditions of the note and mortgage, to see if doing this would violate them and could result in an automatic acceleration of the loan. The question will always be, what if in 2,3 4 or 15 years, you change your mind and no longer want to pay, thus leaving the current owner responsible for the debt. If they are in foreclosure at this time, their best option is to try and modify the loan with the lender or see if the lender would accept a short sale.
RealEstateAnswer and 4 other Real Estate Law Specialists are ready to help you

Related Real Estate Law Questions