I have a question correct me if I'm wrong, confused,or not using the proper terminology.
I've heard of a process in which you:
-Contact homeowner(in pre-forclosure)
-Let them know you can help them avoid scars on their credit by clearing up their back payments and making their payments on their existing mortgage with the agreement (through a quit claim and some other forms) that you are going to complete the full purchase in say 2 or more years.
In order to contact the bank on sellers behalf you:
-Need a written document signed by homeowner giving you authorization to speak with the bank on their behalf.
When you contact the bank you just need to verify:
-The balance and rearage
-notify them that your going to clear up the rearage and make payments on this loan for the current homeowner(not stating you are going to buy it).
At this point the homeowner moves out:
-You find a renter (with just a few little scars on their credit that can be cleared up within a year)
-Do a lease purchase or rent to own agreement with them for a little more $ above the payments that you are making, stating in 12 months they are going to purchase the property for an agreed upon purchase price (hopefully higher than what your going to be paying off the original homeowner).
FINALLY the questions are:
1. Is this considered an assumption of mortgage (if it is this post is pointless because assumable mortgages don't exist anymore)?
2. What would be the correct title(s) for this type of transaction?
3. What documents are needed for this transaction?
Thank you in advance for your input.
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