Yes, they get the house free and clear.. They do have to make payments for taxes, electric etc... They usually give the new homeowners "gift money" to help with those costs.. Either way it would be way cheaper than paying ANY mortgage payments.

AND they usually pay off the old mortgage on the house they tear down... I have never seen them NOT do it...

I just can not believe anyone, after having a gift like this to change their lives, can manage to make it a bad thing... It is CRAZY!