Home purchase/deed transfer from parents went very wrong!!!

Well the new lawyer simply said to contact a lender and get the ball rolling. Then if I need a lawyer go from there.

I am simply going to tell the lender that the property is owned by both set of parents. My wifes parents will give us there part and my parents require ther deposit back and pay off the mortgage.

Maybe they will have mercy on us and play ball. Everyone just wants out and all we want is a mortgage/deed in our name by ourselfs. :cry:

funny to read "if i need a lawyer" - i would have to think that a good lawyer would have prevented this entire nightmare to begin with.

If the finance company would have did there job, and the inital lawyer did his job, then all would have been well. My parents would not think that we swindled them. Our name would be on the mortgage and deed.

We have been trying to fix this problem for a while now and its time for it to end.

I'm going to try and jump in and help George a little bit, I think I've sussed out enough info.

Client wanted to purchase the home from the Wife's Parents but couldn't get a loan at the time.

Client's parents (not the Wife's), put up a down payment and wound up with the loan in their name, even though it was supposed to be in all 4 parties names (Client, Wife, and Client Parents).

The house sits across two pieces of land, but the title company and the lender messed up and only encumbered one parcel.

So now, Client Parents own half of the land. Wife's Parents own the other half. There is a loan on only one half, the other half is free and clear.

Because Client is not on the mortgage or the deed, I would propose a new contract to purchase both legal parcels, with the Client being the buyer and both sets Parents being the sellers. The Wife's Parents can gift the equity in their parcel, and the Client's Parents can get their down payment back.

The trick becomes the fact that this is not an arms-length transaction, so there is going to be a lot of scrutiny. I recommend laying it all out on the table to a really good lender. The more documentation you can provide, the better. Get the original contract, documents that show the legal status of the properties. A survey that shows how the house sits on the two lots, etc.

What a mess.

Howard, you got the story just right. You can see our delima and I dont know how I still have any hair left.

I went to my father a while back asking him to add me to the deed to make things easier. He said only if he will be guaranteed that he will get his money within 6 months. It was a bad visit.

The wife and I went to a local bank and tried to get a loan. My credit score was too low at the time because of some un-know doctor bills my ex-wife had occured after our devorice but billed them to me.

We now have our credit cleaned up and the score is in a good range. I refuse to as my father to add me to the dead and want to do it without there help.

Hopefully the bank lender will not pass out after hearing out story.

howard thanks for the interruption - i needed the rest, i think. it's astounding what took place here, and i believe that a reasonable lender, with sufficient sense to understand what has taken place, will strive to rectify matters.

for family issues to arise out of this mess is disastrous, particularly since it was no fault of any of the parties (911 & wife, and both sets of parents), but that the attorney and lender were deficient in their actions. it's a rotten shame - hopefully that familial relationship can be rekindled with a good result.

and i agree with howard's assessment that documentation of all that took place will go a long way to solving the entire mess. i sure hope it works out, and soon.

Thanks to both of you for having the patients to listen and advise me. We have finally got the courage up to go to a lender after the last time. When we had went trying to fix the issue and found out the credit score problem, we got discouraged. Not to mention the housing market and all the forclosures. The interest rates were between 6 and 7%. So maybe it is a blessing.
We should be able to swing a 5 to 5.5 interest rate now. Considering the rate we have now is 9.##%.

Thanks again guys, and if either of you get to brainstorming any further, let me know.

I just hope something like this dosent happen to anyone else. I really can beleive it even has happend at all. :cry:

i think that the unusual nature of what took place is going to be hard to duplicate, even given the lack of care and concern in much of the industry. there are lo's whose only concern is the closing and the dollars coming their way; the lenders' representatives in processing and underwriting are far more concerned with how a transaction runs from their standpoint, and lawyers are sometimes compromised for who knows what reasons. the bottom line with these sorts of folk is that the consumer gets the short stick - not intentionally, mind you; but from neglect mostly.

that's just my opinion, carved out of experience directly and buttressed by witnessing some of what i've just stated. i'm not trying to paint the entire industry with the same brush, but for those who see themselves in it, i hope there's room for change.

and, of course, i hope that the lower rate environment that we're in will afford you the best deal you can land and take care of all of this mess.

We are trying to go with a reputable bank this time.

I have bought and sold a couple of other properties in the past and have never had such a bad experience.

Thanks for the help. And I hope you are right about getting a good interest rate and getting this mess corrected.

thanks.

i hope to hear back that you've rectified the property issue, obtained a favorable new mortgage and that the family issues have been settled amicably as well. i wish you well.

Sad to say, the mortgage/land issue is easier fixed compared to the family issue. So you can see how bad this has been.

I dont know if the family issue will ever be fixed with the cause/effect of the bad land deal. :cry:

Quick update:

We applied at a local credit union. Because of some things on my credit, we were declined. They said I would be contacted by Superior Mortgage Group or SMG. Maybe they can help. My credit score wasnt bad, I just had some late payments on my old mortgage thats still on my credit report.
I hope someone can help me, I really though the credit union could help. :cry:

Hi!

Welcome to forums!

If there are too much of negative items on your credit report, it would be difficult for you to qualify for a loan. Moreover, negative items have a bad impact on your credit score. However, as you've only one negative item on your credit report, you should have gotten a loan. I would suggest you speak to some other lenders in your locality and check out if you can qualify for a loan. You can even speak to the lenders of this community and seek a no obligation free mortgage consultation. This will help you know whether or not you'll be able to qualify for a loan.

Feel free to ask if you've further queries.

Sussane

I am not going to let this some us. I am going to a local bank and try it again in a few weeks. I am also going to try to repair my credit report also. Even if I have to fee an Lawyer. The credit union required us to open an account and have my paycheck direct deposit to just apply for the loan. Luckly I havent redirected my paycheck yet. And as soon as 30 days are up my account will be closed.

credit unions are pretty well renowned for offering loans to riskier borrowers than the conventional, secondary-market playing, lenders are. unfortunately, you found yourself a conservative cu that wouldn't play its own game, but wanted to mirror their competitors.

i know naught about smg, but i presume that they have an alliance with your credit union in some way - hence the referral. let's be hopeful that they'll look at you more favorably.

was the 30-day late within the last 12 months? it would have had to be, i'd think, since that's a relatively standard method of reviewing your payment habits. if it was greater than 12 months ago, then they're even more conservative than appear at first glance.