Taking Over Payments

[David Drew]

Hi BP. I am a REI in Binghamton, NY. I'm currently receiving a good stream of leads for owners who want to sell their homes. What I'm finding is that many of them are either under water or have a mortgage owed which is more than I'm willing to pay for the property. A few of these properties are really good deals. What I'm interested in understanding is how to take over payments or have the owner supplement those payments in a purchase agreement. Here's an example: Owner wants to see a house for $30k, he owes $30K. I'm willing to pay $20k. What are my options?

I think I can set something up where he transfers ownership to me (risking Due on Sale Call himself) and I start making payments to him in a Seller Financed deal.  If he owes 30k and his payment w/ taxes is $450 per month, I could offer 30k with 0 down @ 10%, making my payment to him $550.  He makes 100 bucks a month and I get a house.