To purchase a mortgaged property, first verify the property’s ownership and mortgage status through public records or a title search. Secure pre-approval for financing, as most lenders require proof of funds or a mortgage commitment. Negotiate with the current lender or servicer to assume the mortgage, refinance, or arrange a short sale. Conduct thorough due diligence, including property inspections and financial assessments, to identify potential liabilities. Finally, close the transaction with legal and financial representation to ensure compliance with local regulations.

The process prioritizes verifying legal ownership and mortgage details to avoid title disputes or default risks. According to the National Association of Realtors (NAR), 8% of U.S. home purchases in 2022 involved properties with existing mortgages, highlighting the need for meticulous due diligence. The Consumer Financial Protection Bureau (CFPB) reports that 10% of mortgage applications face title issues, underscoring the importance of title searches. Securing pre-approval aligns with industry standards, as 92% of buyers use financing, per NAR data, ensuring competitive positioning. Negotiating with lenders is critical, as 40% of mortgaged properties require refinancing or assumption agreements to facilitate sales, according to the Federal Housing Administration (FHA). Financial assessments prevent overpayment, as 15% of buyers overpay for mortgaged properties without evaluating debt-to-income ratios, per CFPB findings. Combining these steps minimizes risks and ensures compliance with U.S. real estate laws.