Acquire property by assuming adjustable loan

[Theresa K.]

Has anyone acquired property by assuming an adjustable rate loan? What are the potential pitfalls? Will the lender let you assume the loan if it's in default status assuming you pay the defaulted amount? Do you have to be an owner occupant if the original loan was OO?

I'm thinking about pre-foreclosure properties that have adjustable rate loans originated between 2005-2007, where there is no second on the property and hopefully a little bit of equity in the property.