Posted on: 26th Dec, 2009 03:22 pm
my wife and i saved up to purchase a home, and found a great one. unfortunalty we could not sell our existing home, and thus could not buy the home. so my parents agreed to buy the house, and we put up all the cash. the market is still weak, and our old home was turned into a rental. we still cannot buy the house, and my parents need to refinacne their commercial property and need this property off their hands. the house had 100k in equity, we owe $154k. my mother in law is willing to help by assuming the mortgage. can we add her to the deed/title/loan? if so can we then refinance with her as the sole owner dropping my folks? i want to avoid having to cough up 20% down, and go through a complicated purchase when no one is actaully moving? any advice would be appreciated.
thanks d.
thanks d.
Hi D,
You can add your mother-in-law to the property deed by signing a quit claim deed once your parents transfer the property to you. As far as the loan is concerned, she will assume the loan. However, you should check out the present mortgage deed in order to know whether or not it is assumable. If not, then she will have to refinance the mortgage in her name.
Thanks
You can add your mother-in-law to the property deed by signing a quit claim deed once your parents transfer the property to you. As far as the loan is concerned, she will assume the loan. However, you should check out the present mortgage deed in order to know whether or not it is assumable. If not, then she will have to refinance the mortgage in her name.
Thanks
James,
Thanks for the info. I spoke to a local real estate agent and asked for advice, and I was told that the prperty will have to be sold to my mother in law, and that the quit claim, and refinance option in no good. Is there a specific way in which the process is completed? My thought is that my mother in law quitcalims to the deed. Then after that she works with the real estate attorney to refinance the house note in her name and my folks are removed from the note, and the deed. Please correct my false assumptiosn, and again thank you. Getting desperate and hate to lose our home.
Thanks for the info. I spoke to a local real estate agent and asked for advice, and I was told that the prperty will have to be sold to my mother in law, and that the quit claim, and refinance option in no good. Is there a specific way in which the process is completed? My thought is that my mother in law quitcalims to the deed. Then after that she works with the real estate attorney to refinance the house note in her name and my folks are removed from the note, and the deed. Please correct my false assumptiosn, and again thank you. Getting desperate and hate to lose our home.
i think assumption is an unlikely scenario.
i also think the realtor is wrong. you do definitely need to have your mother in law obtain a new mortgage, but that can be done concurrently with a quit claim deed. frankly, if you're doing legal business, you should talk to a law expert, not a real estate expert. and, please don't try to have your lawyer drive you around looking at houses. it's like oil and water - they don't mix.
check with your lawyer and avoid the commission the realtor is looking for.
i also think the realtor is wrong. you do definitely need to have your mother in law obtain a new mortgage, but that can be done concurrently with a quit claim deed. frankly, if you're doing legal business, you should talk to a law expert, not a real estate expert. and, please don't try to have your lawyer drive you around looking at houses. it's like oil and water - they don't mix.
check with your lawyer and avoid the commission the realtor is looking for.
