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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 27567
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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I reside in California and wanted to find out if it is possible

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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.

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 4 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.
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