Posted on: 31st Oct, 2009 07:26 am
My Neighbor (Like a second Mom) is filing for Bankruptcy. She would like to sell her house to me. but currently my credit will not allow me to secure a loan. Her lawyer said there is a way to transfer the deed to me and then the taxes, mortgage etc would be my responsibility and the home would be mine. I trust my neighbor I just do not want to lose the house if it is signed over to me. Can someone advise please?
The only proper way to do it is to assume her existing mortgage. If you can't assume it, there isn't any other way that makes sense. She puts herself in a bad position if she Quit Claims Title to you because she's still fully responsible for the Note.
if she quit claims title to me and i do not pay nor she does than the house would be foreclosed on right? so as long as i take care of the mortgage and taxes the house will be fully mine then right? am i also able to get a home equity loan on the house even if she does quit claims title and the mortgage is in her name?
>>If she Quit Claims title to me and I do not pay nor she does than the house would be foreclosed on right?
Yes. Your neighbors credit would be destroyed and she'd receive a Judgement, but nothing would happen to you because the note isn't your responsibility.
>>So as long as I take care of the mortgage and Taxes the house will be fully mine then right?
>>Yes. You have no risk in the transaction - all the risk is on your neighbors shoulders. But what happens if you get in an accident, and are unable to make the payments? Or you lose your job and can't find another? Both are very common scenarios and nothing bad will ever happen to you if they occur, but your neighbor will be impacted negatively.
>>Am I also able to get a home equity loan on the house even if she does Quit claims title and the mortgage is in her name?
No
Yes. Your neighbors credit would be destroyed and she'd receive a Judgement, but nothing would happen to you because the note isn't your responsibility.
>>So as long as I take care of the mortgage and Taxes the house will be fully mine then right?
>>Yes. You have no risk in the transaction - all the risk is on your neighbors shoulders. But what happens if you get in an accident, and are unable to make the payments? Or you lose your job and can't find another? Both are very common scenarios and nothing bad will ever happen to you if they occur, but your neighbor will be impacted negatively.
>>Am I also able to get a home equity loan on the house even if she does Quit claims title and the mortgage is in her name?
No