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Legal Issues With Taking Over Payments

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Services for Real Estate Pros with Second Self Virtual Assistance

OK, all you smarty-pants REALTORS® out there.  I've got a question for you about the legal issues with taking over payments on a house.

In a few weeks, my family and I are relocating from Southern California to the Boise, ID area due to family issues.  We were going to rent a home and look for a house to purchase.  However, we found a home in the perfect location for us.  The owner had a sudden death in the family and moved out of the house.  They are three months behind on their mortgage payments.  We are willing to pay the three months of arrears and take over payments on the mortgage but don't know the legal part of it all.

What questions should we be asking?  What information do we need?  What paperwork would we need to file?  If anyone can help me with the legal issues of taking over payments on a house, I would be eternally grateful.

Thanks,

Heather Chavez, Real Estate Virtual Assistant

Comments (5)
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Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

You need to check to see what the loan document specifies - best to consult an attorney.

Mel

Sep 30, 2010 12:54 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Talk to a real estate attorney in Boise.  You can't just make the payments and be secure if the lender does not approve of the assumption.

Have sellers/owners sign a 12 month lease with you and any payments you make should be credited toward rent....

Heather * No NASCAR in Idaho so you'll have to lobby with Kasey Kahne for new track in WA!!!!

Sep 30, 2010 12:55 PM
Heather Chavez
Second Self Virtual Assistance - Caldwell, ID
Real Estate Virtual, Assistant (928) 692-3235

We've got a call into a Realtor that we had just begun talking to up in Boise, Mel and Wallace.  I was looking for more opinions and knew Active Rain was a good place to try.  Thanks, guys.

The lease was an idea I thought might work, Wallace.  We definitely won't do anything until we've consulted a professional.  And I am bummed about the no NASCAR in Idaho.  But, with the decrease in cost of living, we would now be able to afford to travel to Phoenix, Las Vegas or even, dare I say, Sonoma.  Wine, wheels and woo-hoo!

Sep 30, 2010 12:59 PM
David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City

Approval of the lender is key and you need to search public records. You become responsible for all liens on the property.

Sep 30, 2010 01:03 PM
Greg Cook
Platinum Home Mortgage - Temecula, CA
Mortgage Consultant NMLS ID# 283159

Heather, the only assumable loans are FHA, VA and some ARMS. If you don't intend to do that but just start making payments you will probably trigger the "acceleration clause" that is in every mortgage.

That being said, most lenders don't want another property especially if payments are being made, but their overriding duty is to protect the investor that bought the loan.

Not an Attorney but you may be jeopardizing your license as well.

Sep 30, 2010 01:21 PM
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