Posted on: 20th Nov, 2007 12:09 pm
My wife and I went through a Ch 7 bancruptcy 3 1/2 years ago, due to losing a business. So, we had to move. My father took out a mortgage in his name and we pay it and live in the house. The mosrtgage is for $199,000 but the value of the house is $275,000 as we really updated it. How do we best go about either, getting our name on the title or getting my father-in-law to buy it with little closing costs? He has the credit to do so and would be glad to but is there a way to transfer a morgage or sell a house with little or no costs? Thanks
Hi rcloeffler,
Welcome to this forum.
I agree with Michel. Your father can sign a quitclaim deed and transfer the title to you. But that will not transfer the title to your name. You should talk to your lender and refinance in your name to remove your father's name from the mortgage.
But you may need to pay higher interest rate as you have gone through the BK 3 1/2 years ago. Bk remains in the credit report for 7 to 10 years, so do you have a good credit score now?
Best of luck,
Larry
Welcome to this forum.
I agree with Michel. Your father can sign a quitclaim deed and transfer the title to you. But that will not transfer the title to your name. You should talk to your lender and refinance in your name to remove your father's name from the mortgage.
But you may need to pay higher interest rate as you have gone through the BK 3 1/2 years ago. Bk remains in the credit report for 7 to 10 years, so do you have a good credit score now?
Best of luck,
Larry
you can be quuitclaimed on the title by your father wich will give you ownership but not the responcibility for the mortgage. In order to get the mortgage in your name you nedd to either refinance once your name is on the title and you can show proof of making payments on it for the last 12 mon. You would also have to qualify for the mortgage itself. In order to reduce your closing costs you can go for a no closing costs mortgage. (it will have a higher rate but costs will be limited or there will be none)
The easiest way to get the home out is toi do a family deed transfer Refinance. You will be put on deed and your father removed. Their will be no out of pocket expenses but you will have closing costs associated with. The key is tyo work with a professional that knows what they are doing. If you just start quick claiming people on and off title it will creatre a small problem for yourself because banks often require 6 - 12 month seasoning. Also your banktruptcy is going to affect refinancing with conforming lenders but their are also a great deal of alternatives available oput there for yourself. You could also do a gift equity purchase from your father but then again you will likely need to bring some dollars to the the table.
Jason Redding
Senior Mortgage Specialist
Nickel City Funding
Orchard Park, NY 14127
877-865-3232 ext 212
Jason Redding
Senior Mortgage Specialist
Nickel City Funding
Orchard Park, NY 14127
877-865-3232 ext 212
If the mortgage is in his name you will need to refinance. You should be able to be added to title, then refinance in your name only and then take off your father in law off the title.