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Can we take over the payments of an "almost" foreclosure on a house?

There is this house that is going up for sale. Our credit is not so well right now and we are looking into leasing/option to buy homes. If a house goes up for sale that is on the brink of foreclosure, can we lease it and take over the payments? Wouldn't that help the owners from going into foreclosure?

Public Comments

1. No the bank is foreclosing on the house because they want the current borrowers off. If you can arrange a short sale where you buy it from the bank you can get a new loan with the bank. You will have to qualify for this loan credit and income. The bank wont keep the old owners on the property, you will have to get them removed and get your own loan.
2. You are talking about a couple of different things at the same time. 1. a "preforeclosure" typically means that the owner is in default and the foreclosure process has started. Since the owner stills owns the property, they can do almost anything they want to do including executing a lease/option. However, if the owner doesn't pay the lender then, eventually, the lender will foreclosure and then the lender will be the owner. At this point, the lender can contract with you with a lease/purchase if they want to. 2. Sometimes, a mortgage loan can be assumable. Understand that the actual sale of the house and acquiring a mortgage in order to buy the home are two seperate (but typically related) transactions. In other words, you don't even need a mortgage to buy a house. You simply need to have enough cash or other assetts to pay for it in full. Sometimes, the lender will let you take over the existing loan and allow you to assume title to the house. 3. A different kind of arrangement is known as a land contract. In this situation, you pay the mortgage and have a contract to buy the home at a future time. However, you typically don't own the home and neither the home nor the original loan is in your name. If you pay your monthly payments to the current owner, you are trusting the current owner to forward that payment to the lender. If you don't trust the current owner to do this, it is better to make payments through an escrow agent or other neutral third party.
3. Be very careful entering into this kind of an arrangement I would suggest that you seek proper legal advice if you are planning on leasing a home that's on the brink of foreclosure because if the current owner fails to meet payment obligation to the lending institution you will be left out in the cold when that foreclosure occur therefore you would be best serve in negotiating a transfer of ownership up front and pay your own mortgage...