l found an ad where a husband and wife owned investment company is selling & transferring the deed/title to a home for a new home for $30,000 but when l emailed for more info they said that the home has an existing mortgage on it for $162,000 but they pay taxes and insurance. what is it they are trying to do?
Here is what it says in part of the ad

''We are selling and transferring the title (deed) to a buyer for $30,000.00. Wish means they would OWN the home. There is no qualifying involved. No credit needed. This is a great opportunity for someone just starting out or rebuilding there credit. ''

They do not know what they are doing!

They r trying to sell the house subject to the existing mortgage. You give them $30,000. You then pay them each month on the $162,000 loan. They take that money & pay the mortgage company. The mortgage stays in their name, the taxes get paid by them & the insurance gets paid by them. At the end the title of the house will be transferred into ur name.

The cons of this are.how do u know they will pay the mortgage. If they don't, u gave them $30,000 & have a foreclosure home u r living in. Approach it very cautiously & make sure u have a knowledgeable real estate lawyer on ur side.

Good Luck!

l am not a real estate expert but l do a bit of research on real estate and if l were you, l would stay away from this. It does not sound good at all.

Patrick is correct. They have obtained the home subject to the existing mortgage, which basically means the deed is in their name but the mortgage is in the name of the person they bought the house from. They r now looking to transfer the deed to you, & have u make the payments. Make sure u make the payments yourself for the mortgage, & do not depend on them to do it. They (or the original owner) will need to contact the mortgage company & let them know that u r allowed to get information on the mortgage when needed. The mortgage statements should go directly to ur address also.

As long as u make the payments, u will own the home once the mortgage is paid off. They will most probably use a Quit Claim Deed to transfer ownership. l would not recommend letting the mortgage company know. One thing u will need to do is keep the existing insurance in place (which may be included in the monthly mortgage payment, but u should verify that), in addition to getting insurance in ur name (just for yourself, do not have the mortgage company named as additional insured) so that u r covered if anything is happens to the house.

Patrick is right it sounds like a 'subject-to existing financing' transaction they r doing , often referred to as a 'sub-to' deal.

These type of transactions r more complex than typical real estate transactions & there a lot of things to be cautious about regarding legality.

With that said however , many many people having been making lots of money on these kind of deals for decades & done properly r completely legal & legitimate.

There r scam artists in many industries who r not operating legally & doing shady things that people hear about & become afraid of.

There r also safer & better ways than 'sub-to' to accomplish basically the same thing ( Seller wants to walk away with the $30K in equity in the property , assuming it is actually there , while allowing a Buyer to take control of the property for only $30K instead of needing to get immediate financing for the entire purchase price minus whatever down payment is involved ). What this accomplishes is opening or expanding the field of potential Buyers to anyone who can put down $30K. Other ways to accomplish basically the same thing r :

1) Lease / Option

2) Using different forms of Land Trusts

Some of these 'creative' techniques r somewhat complex compared to the conventional sale of real estate , but r completely legal & ethical if done correctly. The reason they were created in the first place under the guidance of capable & competent real estate attorneys is to help create situations where both Sellers & Buyers can accomplish their goals with a particular property & execute a legal transaction that is beneficial to both parties.

Most of the more complex strategies started with higher end Commercial Properties where sources of funding were sometimes more limited. Over time , as more people began to understand the philosophies & principles of these kinds of transactions & the benefits of using these strategies , they became a lot more common.

This is why people like Donald Trump have teams real estate attorneys & negotiators trained to apply these numerous strategies to accomplish more profitable goals by leveraging the more complex strategies.

From tax shelters to limiting down payment requirements to maximizing the amount of properties u can buy or control by making the most of liquid capital ( why put $100K down on one property if u can put $1K down on a hundred properties ).

There r thousands of books written on the different techniques & strategies & hundreds of real estate investing associations , online communities ( loaded with accomplished investors who r more than willing to help & answer questions & provide additional resources ) & across the country , that r very familiar with creative real estate methods.

There is tons of good & even free info out there just remember to always consider the source & most importantly , involve a competent real estate attorney. Preferably one who owns investment properties & also works with a large number of real estate investors. Many real estate attorneys will give u a free consultation , if u r serious about investing in real estate , find a good one & developing a working relationship with them.