Posted on: 24th Nov, 2010 08:08 am
Hello: I have been trying to help my father reduce his mortgage payment as his monthly financial obligations exceed his net monthly income. I've spoken to the bank and they decline his request as according to them he does not have sufficient hardships, which he does but they view it differently. My dad does not want to default on his payment and of course not foreclose. I was thinking of a scenario but did not know if it was something that would work or back fire against us.
'Can my dad default on the payments, have foreclosure proceedings and have my husband buy the house from the bank at a much lower cost and then put it back under my dad's name'? I want my dad to keep his home but the payments are too high for him and although I help him make the payments there is only so much I can do.
I thought of doing this so my dad can still keep his home but with a new loan amount that he an afford since the foreclosed homes are so cheap now. Can a person actually buy the house directly from the bank if they know the person is defaulting on the payments?
Maybe I am not making much sense :O)
Your thoughts or suggestion? I am very stressed out about this and pray to GOD everyday that he help me come up with an action plan to help my father.
Thank you!!!
'Can my dad default on the payments, have foreclosure proceedings and have my husband buy the house from the bank at a much lower cost and then put it back under my dad's name'? I want my dad to keep his home but the payments are too high for him and although I help him make the payments there is only so much I can do.
I thought of doing this so my dad can still keep his home but with a new loan amount that he an afford since the foreclosed homes are so cheap now. Can a person actually buy the house directly from the bank if they know the person is defaulting on the payments?
Maybe I am not making much sense :O)
Your thoughts or suggestion? I am very stressed out about this and pray to GOD everyday that he help me come up with an action plan to help my father.
Thank you!!!
Hi dbadillo,
The plan that you've mentioned is good but it will be the discretion of the lender as to whom he will sell off the property. If the lender does not sell the property to your husband, then your father will lose the house. The person who has defaulted on the mortgage payments won't be able to buy the same property from the lender at a foreclosure auction.
If the property has equity, then your husband can buy the property from your father and refinance the mortgage at a lower rate. He can pay off the loan dues and sell off the property to your father again.
The plan that you've mentioned is good but it will be the discretion of the lender as to whom he will sell off the property. If the lender does not sell the property to your husband, then your father will lose the house. The person who has defaulted on the mortgage payments won't be able to buy the same property from the lender at a foreclosure auction.
If the property has equity, then your husband can buy the property from your father and refinance the mortgage at a lower rate. He can pay off the loan dues and sell off the property to your father again.
Can dbadillo have a llc buy her dads house instead of the husband then later sell or transfer it to the dad.