Take over payments can be a risky way to buy property. Much depends on the terms of the original mortgage note. In essence, buyers pay mortgage payments on behalf of the owner until they can finance in their own name.

The problem with this method TMW Maxwell Price is most mortgage contracts require borrowers to pay off the balance any time property is transferred or sold. Be certain to read the fine print and consult with a lawyer before entering into take over payments agreements.

When a Subject to contract is used, buyers pay mortgage loan installments in exchange for property rights. The loan remains in the property owners name until buyers can obtain bank financing. Just as with take over payments, it is vital to read the mortgage note to determine if this method is legal.