Expert: Jessica Bryan - 6/7/2006

Question
I have heard you can do a no down/no credit check and assume someone's loan. How often does that happen and how can I find something along those line. What pit falls should I watch out for? I too am a expert on here, in the rape and incest field. So I am thanking you for your time that you are giving. Have a great day.

Answer
Dear Sheryl;
There are certain circumstances where you can assume someone's loan but assumable loans have become much more scarce.  Banks want more control and want to make sure that you are a qualified borrower.  However, if a home has gone into foreclosure, sometimes banks are willing to negotiate, or if a home is facing foreclosure sometimes the owner is willing to let you take over their loan with the bank's permission. Because it seems like everyone hasheard of this, I get many inquiries into how to do this. That means competition for the few properties that this method will work with. Carlton Sheets...the "no money down" guru has a web site and training tapes that go into this in great detail.(www.CarletonSheets.com)  Years ago, I studied this technique and found that this only works during certain market conditions and in certain areas of the country. It takes lots of work and research and then lots of effort to convince people and banks to work with you on this. The pitfalls are that you assume someone else's debt and liens, back taxes and other problems associated with the house.  You can be buying into a money pit and also pay the government taxes, assesments, and liens.Don't rush into this--take your time and do your homework.  Make sure that you know what it is that is really owed on the house, what condition the home is in, what needs fixing and how much it will cost before taking title.  

Good luck and best wishes.
Jessica Bryan
Managing broker
House to Home Realty Services