Posted on: 18th Apr, 2013 09:37 am
ok heres the deal. my husband and brother-n-law bought some property together, that consisted of acreage, horse stables, double wide and single family home on two parcels. the brother-n-law wasn't able to assume the loan his self, so my husband offered to partner with him, because he also had the same interest in the property. although my husband was able to obtain the loan alone, he partnered because he knew our brother-n-law really wanted the property.
after about 5 yrs my husband no longer wanted to be part of the property, because of the conflicts with the upkeep of the property, so they came to an agreement that our brother-n-law would buy back his part for a set $ amount, pay him and refinance to move my husbands name from the property and mortgage.
about a 1.5 yrs later, he paid my husband but was unable to refinance in his name alone. the brother-n-law has solely made all the motgage payments, paid taxes, and insurance as agreed, but the mortgage company will not let loose of my husband for some reason.
my husband and i now want to purchase another place for our our horses, and are afraid that this mortgage note is going to affect our ability to purchase. our bank told us that most likely if we had an agreement/letter of some sort put in place stating that our brother-n-law is the person responsible for the repayment of the mortgage, then we may be able to qualify.
does this sound like something we should try and do and assumption on? and if the bank doesn't consent to the mortgage assumption, will this agreement still work for our new loan decision?
also, there was a scare this past tax yr due to their current mortgage lender. a notice of forclosure was threatened, because they didn't think the real estate taxes were paid. this had my husband and i concerned that if they did forclose, they would come after our home we just paid off. would it be a good idea to put this home in one of our adult childrens names, or will the assumption (without lenders consent) stop the lender from going after our assets?
thanks so much for you time in advance. it's greatly appreciated.
tina
after about 5 yrs my husband no longer wanted to be part of the property, because of the conflicts with the upkeep of the property, so they came to an agreement that our brother-n-law would buy back his part for a set $ amount, pay him and refinance to move my husbands name from the property and mortgage.
about a 1.5 yrs later, he paid my husband but was unable to refinance in his name alone. the brother-n-law has solely made all the motgage payments, paid taxes, and insurance as agreed, but the mortgage company will not let loose of my husband for some reason.
my husband and i now want to purchase another place for our our horses, and are afraid that this mortgage note is going to affect our ability to purchase. our bank told us that most likely if we had an agreement/letter of some sort put in place stating that our brother-n-law is the person responsible for the repayment of the mortgage, then we may be able to qualify.
does this sound like something we should try and do and assumption on? and if the bank doesn't consent to the mortgage assumption, will this agreement still work for our new loan decision?
also, there was a scare this past tax yr due to their current mortgage lender. a notice of forclosure was threatened, because they didn't think the real estate taxes were paid. this had my husband and i concerned that if they did forclose, they would come after our home we just paid off. would it be a good idea to put this home in one of our adult childrens names, or will the assumption (without lenders consent) stop the lender from going after our assets?
thanks so much for you time in advance. it's greatly appreciated.
tina
Hi nitengail,
Yes, this is a good option to try out. Your brother-in-law can contact the lender and try to assume the loan. However, if the assumption does not go through then it will be difficult for you to get such an agreement. You can place the property in the name of one of your adult children.
Thanks
Yes, this is a good option to try out. Your brother-in-law can contact the lender and try to assume the loan. However, if the assumption does not go through then it will be difficult for you to get such an agreement. You can place the property in the name of one of your adult children.
Thanks
You can have the agreement showing that your brother-in-law is responsible for the mortgage, though I don't think your lender will accept because the loan will still appear in your husbands name.