How to Check Out a Buyer Who Offers to Take Over Your Payments

Why checking matters so much

When someone takes over your payments, your loan usually stays in your name. If they stop paying, your credit takes the hit, and you could face foreclosure on a house you no longer own. That's why who you sell to matters more here than in almost any other sale.

Use this list on us, too. A good buyer will be glad you asked.

The 10-point checklist

1. Look up the company on Florida Sunbiz (search.sunbiz.org). Check that it's active, who the officers are, and how long it's existed.
2. Check Google reviews and a real address. Look for a real office or registered address and real reviews over time, not a burst of new ones.
3. Confirm a licensed title company or attorney will close. Get the name and call them yourself.
4. No upfront fees from you. You should never pay someone to buy your house.
5. No deed signing at a kitchen table. The deed should be signed with a title company or attorney involved, after a title search.
6. A written servicing plan. Exactly who sends the payment, when, and how.
7. Proof of insurance. A new policy in place at closing that lists the lender, and you as an additional insured or interested party if possible.
8. A written default plan. What happens if a payment is late, how fast you'll be told, and what rights you have.
9. A written timeline to pay off the loan. When and how the loan will be refinanced or paid off.
10. Time for your attorney to review. No pressure, no expiring offers, no "sign today."

Red flags

• They want you to stop talking to your lender or a housing counselor.
• They want you to keep paying them, or to send them money for the mortgage.
• They promise to "stop" a foreclosure or "fix" your credit.
• They say the lender "won't care" or that the due-on-sale clause "never happens."
• They won't put the payment plan in writing.
• The contract has blank spaces, or they say you don't need an attorney.
• They rush you, or the offer expires in hours.
• They can't tell you who the title company is.

Questions to ask, word for word

• "What's your company's legal name, and can I look you up on Sunbiz?"
• "How many homes have you bought this way, and can I talk to a past seller?"
• "Which title company or attorney will close this, and can I call them?"
• "Who will make my mortgage payment each month, and how will I see proof?"
• "Will you use a third-party loan servicing company?"
• "What happens if you're late on a payment? How soon will I hear?"
• "What will you do if the lender calls the loan due? Where does it say that in the contract?"
• "When will my loan be paid off or refinanced?"
• "Who insures the house, and will I be listed on the policy?"
• "Is it okay if my attorney reviews this before I sign?"

Any honest buyer should be able to answer all of these clearly. If they dodge, walk away.

If you're in foreclosure

Florida has special protections for homeowners in foreclosure who sell to an investor (Fla. Stat. § 501.1377). They include required contract terms and cancellation rights. Ask the buyer how they comply, and have your attorney check.

Common questions

Related guides

• The Due-on-Sale Clause: What It Is and How Real the Risk Is
• Behind on Your Mortgage in Florida? What to Do This Week