SELLER FINANCING: Can Someone Take Over My House Mortgage Payments? | Subject To Real Estate Buying

January 6, 2022

How I have bought real estate properties with seller financing where home owner allowed me to take over their house payments (aka Subject To Real Estate Investing).

FRIST: Basics Understanding The USA Laws: Criminal laws versus Civil laws

For example if I break the criminal laws by stealing a car, then, I am in trouble and I may face possible jail time.

However, Civil law for example, if I break my contract with my apartment complex is an example where I don’t go to jail. Another example of civil law is if I stop paying my credit card I have breach of contract but I’m not going to jail.

It is important to understand the two differences in America when buying real estate properties with Seller Financing, Owner Financing, Seller Carry or Subject To Real Estate, or "Taking over house payments" strategy.

Now to answer the question "Can someone take over my house mortgage payments" the answer is YES AND NO!

Yes I have buy real estate by taking over the house with taking over the underlying mortgage and by making the payments to the bank direct after buying the house form seller..

No, Because the mortgage lender does not allow buyer/investor to take over the borrower/sellers mortgage.

So if the answer is no how do I buy houses by taking over mortgage payments?

For example, in 2008 I bought houses from motivated sellers by offering them to buy their home with me just taking over their payments even though the bank does not allow it.

I just never volunteered to explain to the bank that I had taken over their payments however I did send them checks in my own personal name or my business name to the bank and the lender just excepted the monthly payments.

In other words the bank does not allow seller financing or owner financing however I have bought houses by just taking over the sellers monthly payments and the bank has excepted my check and the reason in my opinion is they preferred to have a Income producing asset versus paying tons of money for the trustee to do a foreclosure, pay for a realtor commissions, pay taxes and insurance well they have a performing Note.

I might be 100% wrong as I as I am lawyer!

In my opinion: why the corporate-banks did not foreclosed on me, even though they had the right to in the, DOT, deed of trust.

In the deed of trust the banks have the right to accelerate the note and foreclosures on the real estate property, if they find out that the seller has transferred or conveyed the title to a new buyer like myself as a real estate investor.

Also, my new insurance company does notified the Leander/mortgage company when I insured the house and the lender get to see clearly on the insurance policy who the new owner and the old seller naming being taking off.

So banks have the right to foreclose on houses when the seller transfers title but from my experience in my opinions I believe the bank prefers to have income producing house mortgage versus paying the high cost of foreclosure specially if the note is performing, even though the bank has the power to foreclose because of the due on sale clause in deed of trust.

Disclaimer I’m not an attorney not a financial advisor I’m not a CPA I’m just a refugee they came to America to start buying houses using other peoples mortgages back in the last real estate crash.

So is it possible to take over homeowners mortgages yes.

Is there a risk yes! The bank has a right to foreclose on the seller/and on the new buyer/investor.

However from my understanding of the law but I can be wrong as it is I’m not an attorney buying real estate properties with seller financing, owner financing, subject to real estate investing is only a breach of civil loss and there’s not a criminal offense therefore I’m not going to jail because I bought someone’s house subject to the existing mortgage.

Actually on a hud-1 there’s a section that says buying “subject to existing mortgage” line 203 under the seller section and line 503 under the buyers sections.

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