Posted by Atlanta_bob on July 30, 2004 at 21:50:34:
Seems like no one answered your question, so:
You can purchase a property from the homeowner “subject to” their existing mortgage. You do not assume the loan, you just make the payments to their mortgage company in their behalf. Loan remains on their credit report, not yours. You do, of course, need to obtain a fire/hazard insurance in your name since the homeowner has transferred title to the property (via a Warranty Deed) into your name. As such, you own the property, inherit the underlying debt (via Security Deed), but are not personally liable (to the Lender) for the Promissory Note.
Hope that helps.