Changing Title w/out Changing Loan, how??

Is it possible to keep the Seller’s original loan in place by (me) making up the back-payments (with a contract in place first, of course) in exchange for ownership/title to the property being placed in my name?

The structure I was considering is to sell the property, give the owner some cash to get a new place and walk away with the profit from the sale. To do this I was wondering if some sort of Trust could be drawn up (or contract, or both) where I get control of the property in exchange for saving their Credit History, paying up the back payments on the loan and handling the sale. Is this feasible and is there a name for this sort of a Trust/Contract arrangement?

Also, would this likely kick the original lender to suddenly want full payment on the loan when they see that a new owner has entered in after the back-payments were made?

Greetings Enrico,

This is what is known as buying a property “Subject-To” the existing financing. While this is a well known approach used by investors, there are many aspects to it that can have a big impact your success and/or failure. And yes, it can potentially trigger a “Due-on-Sale” clause from the lender.

If you plan on doing it with homes in foreclosure, I would strongly suggest learning in detail the foreclosure laws in your state. In some states, the laws are extremely harsh when an investor is dealing with someone in foreclosure. Not that it can’t be done, but you need to do it by the book. One mistake can cost you dearly.

You may want to spend some time learning about buying property Subject-To. I don’t know that the forum rules allow me to recommend anyone in particular, but I know for a fact that at least of couple of the moderators on this site have some excellent training materials and programs on this very thing.

Hope this helps!