Posted on: 29th Mar, 2007 07:13 pm
A friend an i purchased a piece of investment property. long story short, we held onto it, and the loan is in his name. my name is not on anything except for the check i wrote. i put up the funds, he put up the credit. he hasnt been making payments, and the house is going to foreclosure. i have business associates who have found a buyer for the house, but are unwilling to deal with my co-investor. if he quitclaims the deed over to me, and i sell the house, then pay his loan after retrieving my investment, would that be a legitimate way to solve our dilemma? my main goal is to get my investment money back, my second goal is to protect my friend from foreclosure if possible. my last resort is to take him to court for the money. the house probably has already received an act 6 foreclosure. any advice? please help!! :cry: :?
hi guest,
welcome to the forums.
it's good to hear that you wish to help your friend.
now, if you wish to have him sign a quit claim deed and transfer the property to you - that's good idea. but you need to inform the lender and get his permission. this is because the lender has an interest in the property as he has invested his money by offering the loan which is after all secured by the property. so, he will be concerned about getting the money back. but then if you assure him and give it in writing that you will be paying off the loan on your friend's behalf, may be he will agree.
a quit claim deed will only help you get the ownership rights on property; it cannot remove your friend's name from the loan. legally he will still be responsible for the payments. so, this is why i suggest that you can give it in writing to the lender that you will pay off the loan as soon as you sell the house.
in the above way, you can get back your invested money, protect your friend from a foreclosure and avoid taking him to court and affecting your friendship.
hope this helps..
god bless you.
samantha
welcome to the forums.
it's good to hear that you wish to help your friend.
now, if you wish to have him sign a quit claim deed and transfer the property to you - that's good idea. but you need to inform the lender and get his permission. this is because the lender has an interest in the property as he has invested his money by offering the loan which is after all secured by the property. so, he will be concerned about getting the money back. but then if you assure him and give it in writing that you will be paying off the loan on your friend's behalf, may be he will agree.
a quit claim deed will only help you get the ownership rights on property; it cannot remove your friend's name from the loan. legally he will still be responsible for the payments. so, this is why i suggest that you can give it in writing to the lender that you will pay off the loan as soon as you sell the house.
in the above way, you can get back your invested money, protect your friend from a foreclosure and avoid taking him to court and affecting your friendship.
hope this helps..
god bless you.
samantha
Guest,
Under an Act 6 foreclosure, one can stop the foreclosure even one hour before the bidding at the Sheriff's sale starts by paying down the unpaid loan balance. This can be done thrice in a calendar year.
But I doubt whether the lender will allow you to have the property quit claimed once the foreclosure has been declared.
Under an Act 6 foreclosure, one can stop the foreclosure even one hour before the bidding at the Sheriff's sale starts by paying down the unpaid loan balance. This can be done thrice in a calendar year.
But I doubt whether the lender will allow you to have the property quit claimed once the foreclosure has been declared.
