Buying a mortgage property advice

Hi,

I am planning to buy a land which as of now is still in mortgage. The terms of payment is a down payment and the remaining will be monthly for 2 years. There is a verbal agreement that when he gets the certain amount he will pay the bank for the property mortgage. I have in mind, what if he will not pay the bank and we will complete the contract to sell and deed of absolute sale, there is a possibility that i will pay the bank for it.

Is that possible? and how can I avoid this? What are other risk that i am taking? 

Thanks a lot.

i would suggest, do not push that plan without concrete documents. baka matulad ka rin sa akin na in the end, lahat ng perang naibigay ko sa ganyang tranx ay TY na lang.

milpatadlas wrote:There is a verbal agreement that when he gets the certain amount he will pay the bank for the property mortgage.

Noooooooo. DON'T do that even if it's in complete writing,
because if he can't pay, the bank will go after you or you will LOSE the property by Foreclosure... (You can sue the seller to get your money back, but that DON'T help you, when he can't pay you.)

Solution steps:
1. Beside the common documents
2. the loan has to be PAID (by YOU get other loan) or the existing loan get TRANSFERED to you NOW AT the sell day.
3. AND you need to get other depts related to the property cleared NOW AT the sale too. (Property tax, electric bill and I suppouse other things as water bills.) = When you negotiate price, you want to deduct the price for such depts.

NOTE! Make ALL at same time or before you pay anything to the seller.

Thanks for the advice and the solution steps. There is more work ahead.