What do we mean by "Taking over Payments"?

Yes, Absolutely! Fill-able HUD-1 This is a standard form that title/escrow companies and attorneys use to build settling statements. Please note lines 203 and 503. CFR-2012-title24-vol5-part3500-appA.pdf (govinfo.gov)This link is the instructions to fill out the HUD1. Note this is a Code of Federal Regulation (CFR) document. Page 396, second paragraph states: "Line 203 is used for cases in which the Borrower is assuming or taking title subject to an existing loan or lien on the property." Would the federal government put this in the Code of Federal Regulation if it was illegal?  

"Subject-To" is a way of purchasing real estate where the buyer takes the deed(ownership) to the property, but the existing loan stays in the name of the seller. In other words, "Subject-To" the existing financing. The buyer now controls the property and makes the mortgage payments on the seller's existing mortgage. This works with all loans - Convetional, FHA, even VA Loans! 

(See #8 for VA Entitlement Quesitons)

 No, we want this to be as painless as possible. So, we will pay for a third-party loan servicing company to service our agreement and they will withdraw money from our account and make direct payments to the mortgage. A loan servicing company is a third-party entity that manages loan-related tasks such as collecting payments, sending statements, and ensuring that the borrower stays up to date on their payments. This helps the Seller have peace of mind, knowing that their investment is being professionally managed. Setting up a third-party servicer also shows proof that payments are being made by the buyer. Which will allow the seller to wipe out their Debt-To-Income on this property with any other lender and “double dip”. Sellers who we have worked with in the past often tell us that they hope we miss a payment! 

(See #3) 

In the highly unlikely event that we are abducted by aliens and unable to make payments, the property would be transferred back to the seller through the Performance Deed which is held at the servicing company.  The house's deed will immediately be transferred back in the Seller's name if we default over a 30 day period. In this scenario, the seller would keep my down payment, all of my monthly payments, and keep all the improvements we made on the property.  

The seller is also protected by a pre-filled document called a Performance Deed, enforced by the closing Title Company.  A Performance Deed is a legal document that allows a borrower to transfer the ownership of their property back to the original owner to avoid lengthy foreclosure and lawyer fees. This document is completed at closing and drafted by the Title Company. 

When a borrower is obligated on a mortgage debt - but is not the party who is actually repaying the debt - the lender may exclude the full monthly housing expense (PITIA) from the borrower’s recurring monthly obligations if

the party making the payments is obligated on the mortgage debt,

there are no delinquencies in the most recent 12 months, and

the borrower is not using rental income from the applicable property to qualify.

In order to exclude non-mortgage or mortgage debts from the borrower’s DTI ratio, the lender must obtain the most recent 12 months' cancelled checks (or bank statements) from the other party making the payments that document a 12-month payment history with no delinquent payments.  *After 3-6 months, 75% of the mortgage is removed from your DTI. After 12 months, 100% of the mortgage is removed from their DTI.

Review full mortgage DTI details here:
Fannie Mae DTI Assessment 

The Seller would NOT be responsible for any repairs or maintenance on the property after the deed(ownership) is transferred at closing. The person responsible for any repairs or maintenance would be whoever is on the deed of the property. Since the Seller’s name would only remain on the mortgage and the Buyer’s name is on the deed, then the Buyer would be responsible for all of the repairs and maintenance.

This is as much of a concern for us as it is for you! With our company getting involved in multiple Veteran Based Charities, we wanted to ensure we were taking care of our VAs in this capacity as well! That's why we work with Matthew Bell who is a Senior Loan Officer, licensed in all 50 states, with 20 yrs. experience, and extensive experience working with VA Loans and a Veteran's Entitlement. Here, he covers a lot of the questions you likely have regarding your Loan and your Entitlement -   Click Here

And before we proceed with a transaction with you - we always set up a Zoom Call with Matthew to go over all of the details and questions pertaining to your situation. You took the time to give your time for this country, so let Matthew and I give you our time to ensure you are taken care of. 

Thank you for your service!

 In order to present your seller with a tailored offer, We will need some specific information about their situation. Don't worry, while some of the questions might seem a bit personal, they're essential for us to dive deep into the details and create an offer that's a perfect fit. Here are the key pieces of information I need to send the perfect offer: We will need the following information.
*Full Address
*Loan Amount Remaining
*Interest rate
*Monthly Payment
* Major Repairs Needed

Send us an email: info@faziorealestatesolutions.com

We’ll take a look at the information that you provided and may contact you by phone to get additional details about your situation and the property that you want to sell. Then, after considering all of the specifics of your home, we’ll usually be able to come up with a fair and honest offer on your property that’s a win-win-win for all of us. And once you have an offer from us, there’s no obligation whatsoever for you to accept it. We promise that the decision of whether or not to sell your home will always be totally left up to you. If you do decide to sell your home to us, the process will go fast and you even get to pick a closing date that fits your schedule!