I located a company that provides listings of homes in California whose mortgages are in default and are in the process of being foreclosed upon. The company claims that if I were to pay off the amount of the mortgage that is in default (typically $10 - $50K), the owner of the home would 'quitclaim' the deed to me, and I could simply take over the payments on the mortgage, move into the house and it is legally mine. The company claims that they will do a title search to ensure there are no liens or judgements against the homeowner losing their house; and I would own the home free and clear, simply by paying off whatever was left on the note. The company said that I would not need to refinance the original note if I did not desire to. Some of the homes this company is listing have significant equity.
The company claims that no credit check would be done on me personally to participate in this process; and after restoring the amount of the note in default I would assume the payments and have full ownership of the home. I don't have very good credit, and am shocked that I could rightfully own a home for less than a traditional down payment, with no credit check. This sounds too good to be true. Is it legal, and is it possible?
Thanks so much for any feedback you could provide.