Posted on: 27th Nov, 2006 04:38 am
my brother in law , is trying to sell my second home (investment) through
a quickclaim deed, he asked me to sign and give the deed in a escrow title company , and the buyer will transfer, assume the loan after 6 month, the buyer wants to prove he can manage the house payment (to the bank)paying rent . Does it is possible to do a contract , signing the deed ? what are my chances?
a quickclaim deed, he asked me to sign and give the deed in a escrow title company , and the buyer will transfer, assume the loan after 6 month, the buyer wants to prove he can manage the house payment (to the bank)paying rent . Does it is possible to do a contract , signing the deed ? what are my chances?
I would highly suggest NOT signing a quitclaim deed.
To start with, there is no reason to sign ANY deed until escrow closes. Even then, I would not sign a quitclaim deed. It would transfer your title and all ownership to the buyer, but the loan would still be in your name. In other words, you would still owe the full loan amount, but would no longer own the home.
Second, very few loans these days are assumable. So, even if the buyer did make payments on time for 6 months, that doesn’t mean the bank would allow your loan to be assumed. Besides, most lenders want to see at least 12 months payment history for a borrower – not 6 months.
If you wanted to sell with owner financing, I would suggest a Lease Option, or Contract for Deed, or Land Contract, or some other form of sale that does not require transferring title to someone else before they can qualify for their own loan.
If you’re not familiar with these forms of owner finance, I might suggest contacting an attorney who is knowledgeable in real estate. Or, at the very least, use the services of a Realtor to explain your different options.
To start with, there is no reason to sign ANY deed until escrow closes. Even then, I would not sign a quitclaim deed. It would transfer your title and all ownership to the buyer, but the loan would still be in your name. In other words, you would still owe the full loan amount, but would no longer own the home.
Second, very few loans these days are assumable. So, even if the buyer did make payments on time for 6 months, that doesn’t mean the bank would allow your loan to be assumed. Besides, most lenders want to see at least 12 months payment history for a borrower – not 6 months.
If you wanted to sell with owner financing, I would suggest a Lease Option, or Contract for Deed, or Land Contract, or some other form of sale that does not require transferring title to someone else before they can qualify for their own loan.
If you’re not familiar with these forms of owner finance, I might suggest contacting an attorney who is knowledgeable in real estate. Or, at the very least, use the services of a Realtor to explain your different options.
Hi Angel,
This seems to be a risky one. You offer your deed to the escrow and then what if the buyer does not assume the loan after 6 months. Moreover, you need to get the lender's approval before selling the property to someone who is likely to assume your loan after some time. The lender may be willing to check the buyer's financial strength and credit score as the latter will be the person repaying his loan in case he assumes it.
Thanks,
Caron.
This seems to be a risky one. You offer your deed to the escrow and then what if the buyer does not assume the loan after 6 months. Moreover, you need to get the lender's approval before selling the property to someone who is likely to assume your loan after some time. The lender may be willing to check the buyer's financial strength and credit score as the latter will be the person repaying his loan in case he assumes it.
Thanks,
Caron.
