No money down purchases

[Subwoofah]

I've been offered money to use my credit to purchase a house. Has anyone had any experience's with this?

[MintRacer]

scam, if the people that rent it defult on rent your credit is on the line

[Subwoofah]

If the rent is assured and a house is put up as collateral for the mortgage... what do you think?

[The Cosworth]

how is the rent assured.

if it was assured why wouldnt a bank do it? They would care less about their credit score then wouldnt they?

[Thaco]

I've heard at least 6 people who have been offered this, i personally told them it's not a good idea, after 6 months or whatever they let someone else assume it, if they default on payments the original borrower is on the hook, regardless of what they tell you, the original borrower is always responsible if the assumer defaults.

[Subwoofah]

So even after 6 months, when the title and mortgage is taken over, the original borrower is responsible for the payments (because the mortgage is assumed)? Is there ever a time when the original borrower is off the hook? Could I add in a clause that protects me?

[The Cosworth]

Originally posted by Subwoofah
So even after 6 months, when the title and mortgage is taken over, the original borrower is responsible for the payments (because the mortgage is assumed)? Is there ever a time when the original borrower is off the hook? Could I add in a clause that protects me?

AFAIK, if you take the loan, sign it (assuring it), it will always be yours unless you can get the bank to approve someone to take it over (assumable) but your still on the hook even after that I think.

[Thaco]

Originally posted by The Cosworth


AFAIK, if you take the loan, sign it (assuring it), it will always be yours unless you can get the bank to approve someone to take it over (assumable) but your still on the hook even after that I think.

correct... there is a clause after a certain time (not sure how long) that you can have CMHC remove you, but i think that requires going through a lot of red tape, and is generally more of a Pain than it's worth.

[lint]

See this thread:
http://forums.beyond.ca/st/222232/confused-about-assumable-mortgages/

[dharminder]

I could be wrong but after it has been assumed by someone else, your still on the hook for i think two years. After that you are no longer on the mortgage. But dont hold me to this, this was a word of month conversation with a buddy. So he could be wrong as well

[barmanjay]

My mortgage broker told me you would be on the hook for the duration of the term of the current mortgage, ie: 5 year term,.. 2 years in it's assumed, origional mortgage holder is liable for 3 more years

[Weapon_R]

You are on the hook for the remainder of the mortgage if you assume it to someone else without qualifying unless you formally request to CMHC to remove your liability from the home after 12 subsequent monthly payments have been made by the new owner.

By the way, what you're suggesting is also called mortgage fraud.

[lint]

Originally posted by Weapon_R
By the way, what you're suggesting is also called mortgage fraud.

This is Alberta, isn't it?

[NewLextasy]

It doesn't even matter anymore NO bank will give out a new assumable mortgage as of november last year. It's not legal anymore.

The only way to assume a house now is if it had a mortgage that was assumable in the first place and even then only cibc first calgary and first line will still allow assumable without quailifying.

Trust me I know I have 4 houses that I assumed.

[canuckcarguy]

CMHC won't allow you to purchase a rental property with no money down, so the only way to do this deal is to sign the mortgage stating that the house will be owner-occupied. Since you don't plan to live there, it's mortgage fraud. Not worth it, in my opinion.

[JordanLotoski]

its called Mortgage fraud!

[turbotrip]

Originally posted by Weapon_R

By the way, what you're suggesting is also called mortgage fraud.

indeed

[Skyline_Addict]

scam.


plain and simple.

[Pihsiak]

If this person is your "friend's" mom and your friend drives a red Lexus, Get the fuck as far away as possible

Scam

[Subwoofah]

lol ill be on the lookout for the red lexus haha

[spikerS]

my late father ran this scam (and i use the term lightly, as they did it as legit as possible, but yes, it was still fraud).

He had a client, who purchased houses and such. he became so far in debt that the banks would not lend him a buck to buy a pack of gum. So, he would offer people $3k to qualify for a martgage, and after 1 year, would assume the mortgage, and a year after that, remove the original qualifier from the mortgage.

my father and his client bought an easy 30+ houses this way.

[Subwoofah]

Did they screw over everyone that took the money?

[spikerS]

nope, they never screwed anyone over. everyone got the 3k for qualifing, and not one mortgage payment was missed.

[brown_guy]

Don't do it ....:thumbsdow :thumbsdow :thumbsdow