Due diligence on the buyer
The structure is legitimate. Not everyone using it is.
We are one of the companies making this kind of offer, which is exactly why this page is specific. A seller who applies these checks to us will get answers. A seller who applies them elsewhere and does not get answers has learned something.
The ten checks
| # | Check | What a good answer looks like |
|---|---|---|
| 1 | Is there an advance fee? | There is none. Federal rules at 12 C.F.R. Part 1015 restrict fees for mortgage assistance relief services, and HUD-approved counseling is free. |
| 2 | Which structure is this? | They name it: assumption, subject-to, or wraparound — and explain the difference without being asked twice. |
| 3 | Does my loan stay in my name? | A direct yes or no, with the release-of-liability question answered explicitly rather than deflected. |
| 4 | Who closes this? | A named title company or attorney. Not a notary at your kitchen table, and not a deed signed before closing. |
| 5 | How do I verify payments are being made? | A written method — servicer access, third-party servicing, monthly proof — not “we’ll keep you posted.” |
| 6 | What reserves exist? | A stated number of months of the full payment, held somewhere identified in the agreement. |
| 7 | What happens if you miss a payment? | Notice to the seller, a cure period, and defined remedies including a route back for the seller. |
| 8 | What if the lender calls the loan? | A written plan with a funding source, not an assurance that it does not happen. |
| 9 | Can I have my own attorney review this? | Encouraged, with time allowed. Any pressure to sign today is the end of the conversation. |
| 10 | Who exactly am I dealing with? | A legal entity name, a real address, a phone that a person answers, and a willingness to be looked up. |
Hard stops
Stop the conversation immediately if anyone asks for money up front to help with your mortgage, asks you to sign a deed before closing, asks you to stop talking to your servicer, asks you to make payments to them instead of the servicer without a documented servicing arrangement, or presses you to sign without letting an attorney read it.
Also stop if anyone asks for your online mortgage account login. A buyer needs statements and documents. Nobody legitimate needs your password.
What to verify independently
- The entity. Look it up in the Secretary of State registry for its home state. A company that has been operating for years has a filing history.
- The address. A physical address that resolves to a real place, not just a mailbox service.
- The title company. Call the closing office directly using a number you find yourself, not one the buyer gives you, and confirm the file exists.
- The written agreement. Read every page. Ask about every blank. An agreement that references exhibits should include the exhibits.
- Your own numbers. Get the payoff from the servicer yourself. Do not accept a buyer’s figure for what you owe.
Free, independent help
A HUD-approved housing counselor has no financial stake in your decision. If you are behind on payments or under a deadline, talk to one before you talk to any buyer, including us: CFPB counselor directory and HUD housing counseling. The free options are worth exhausting first.
You can also report conduct that looks fraudulent to your state attorney general’s consumer protection division, and to the CFPB’s complaint system.
Applying this to us
We charge nothing to review a property. Every transaction closes through a title company or attorney. The structure gets named in writing before anything is signed, and our disclosures page states plainly that a loan may remain in a seller’s name and that a transfer may trigger a due-on-sale clause. We tell sellers to have an independent attorney read the agreement, and we do not want a signature obtained any other way.
Most property reviews here end with a recommendation other than selling to us. That is what the review is for.
Common questions
Is taking over house payments a scam?
The structure itself is used in legitimate, properly documented transactions. Scams occur when a buyer conceals the structure, charges advance fees, avoids a real closing, or refuses to put payment verification and remedies in writing.
Should I pay a fee to have someone take over my payments?
No. A buyer purchasing your property does not charge you a fee to do it, and federal rules restrict advance fees for mortgage assistance relief services.
Is it safe to sign a deed to a buyer?
Only at a properly conducted closing through a title company or attorney, after independent review, and alongside the written agreement governing payments, reserves, notice, and remedies. Signing a deed outside a closing is a serious risk.
How do I report a suspected scam?
Contact your state attorney general’s consumer protection division and submit a complaint to the CFPB. If you are facing foreclosure, also contact a HUD-approved housing counseling agency.
General information, not advice. This page describes how these transactions commonly work. It is not legal, tax, or financial advice for your property, and it does not create any obligation on a lender. Review your own loan documents and the proposed agreement with independent professionals before signing.
Keep reading
Related guides.
No-pressure property review
Bring the loan statement. We’ll bring the questions.
Send the address, approximate loan balance, and monthly payment. We will tell you whether a payment-takeover structure deserves a closer look—or whether another route is likely better.