Taking over house payments ?s

[helosailor]

Back story:
A close friend of mine has a house that he moved out of, and that his kids have been living in. Well, they can't make the payments anymore and he was/is considering letting the house be foreclosed.
He offered me the opportunity to "take it over" and that he would "sign it over to me". He still owes about $50k on it (which at this point, is not much less than its market value).
Now, my credit is far from great at this point. So far from great that I doubt I could get a home loan for it, even for the amount owed.
If I just take over payments on it (pay him/he pays mortgage company), will there be any trouble getting utilities and/or home owners insurance?
He said that it would not be a "rental", that I would essentially be paying off the remainder of the mortgage, upon which, he would sign the deed over to me.

I would like to make the deal happen. It would help both him and me out. I'm just concerned about any potential pitfalls, since this is a non-traditional arrangement.
We would, of course, get an agreement/contract drawn up and witnessed/notarized.

[Shaggin Wagon]

No way, this will end bad! Do not pay on a house that it not in your name. Think of how many car deals go bad this way.

[mk5.0]

Non-qualifying assumable ....

[03mustangdude]

run.

[Roscoe]

No way, this will end bad!

No shit....

[helosailor]

Non-qualifying assumable ....

Probably not an option, for a variety of reasons.

And I wouldn't even consider this with just anyone. He is the closest I've ever had to a brother. I trust almost no one 100%, but I do trust him. We've known each other for well over 20 years. I did make it clear though that I would NOT lock myself in to it with no way out. Have to have an "out" in any situation. Still not committed to anything, just kicking it around.

If you guys had this offer, and a refi/new mortgage wasn't an option, what would you do?

[YALE]

Why don't you at least talk to a lender, and see what you can get done. You might be able to get this done through the short-sale process, whereby you make an offer for what's owed, and maybe a little more, and put the house on a new mortgage. Have you looked the house's value up on the county appraisal district, yet?

[scootro]

this is future me telling you something twenty years from now!

"What A Fucking Retard!!"

[Chili]

I wouldn't do it, just because there are too many ways for you to get fucked over.. Not to say that it would happen, but it is a risk. No matter how much you trust the person.

There are ways to limit your exposure, but limit is the key word. That's just my opinion though.

[4king]

A 50k loan for a house shouldnt be hard to be approved for. Drop into your bank and ask them to run the numbers for you, most likely your payments would be less than what he needs to pay on his mortgage.

think about it this way, if the ac system took a shit on you you would pay the bill and he would get positive equity in the house.

At minimum I would tell him that you would want to pay the mortgage directly yourself. If you pay him and he forgets to make the payment or gets in a money bind your out on your ass in more ways than one

[helosailor]

Thanks for the good, helpful responses. I'm thinking I'm going to pass on this. The house needs a fair amount of rehab (thanks to the kids), and with all of the other variables thrown in, plus the month-to-month costs, it's probably going to be best to pass.

[beefed88]

I would be interested. Cash fast closing. Let me know. Josh.chute@gmail.com

[yellowstang]

I've heard of people doing the rent to own thing, but I think the sellers also either own the house, or maybe some special lender/company can help set it up.

[helosailor]

I would be interested. Cash fast closing. Let me know. Josh.chute@gmail.com

I'll pass it along to him.

[Roscoe]

I've been fucked over the hardest by my friends and family moreso than I have a stranger......