Posted on: 21st Jan, 2009 04:54 pm
I have a current mortgage on an investment property for about $35,000 and I cannot continue to make the payments under my name, but my mother is able to. What is the safest way possible for her to either transfer this loan or for her to get a loan in the exact amount of my mortgage so she can continue to make these payments to the bank and I am out of this situation and my credit isn't shattered?
I'm newly married and we have not bought our first home yet together, and I don't want to shatter my credit before we buy our first home.
Please advise.
Thanks!
I'm newly married and we have not bought our first home yet together, and I don't want to shatter my credit before we buy our first home.
Please advise.
Thanks!
hi priyag,
your mother can either refinance the property in her name or she can assume the loan. she can even speak to the lender about novation which is also a way of transferring the loan to another person's name. however, lenders always prefer refinancing over novation. to know more about refinancing, check out the following link:
http://www.mortgagefit.com/refinance.html
thanks
your mother can either refinance the property in her name or she can assume the loan. she can even speak to the lender about novation which is also a way of transferring the loan to another person's name. however, lenders always prefer refinancing over novation. to know more about refinancing, check out the following link:
http://www.mortgagefit.com/refinance.html
thanks
Thanks for the information!! What happens down the road if she is not able to make payments on this loan either? She owns her own business that's why I'm asking, because it is not guaranteed to be stable.
Also this was an investment property and it was vacant for a while and the city saw it as dangerous to the city, it was damaged, and they demolished the property. Would that effect the results of refinancing?
Thanks...
Also this was an investment property and it was vacant for a while and the city saw it as dangerous to the city, it was damaged, and they demolished the property. Would that effect the results of refinancing?
Thanks...
Hi priyag,
If your mother is unable to pay off the mortgage, the lender will have the right to foreclose the property. If there is a deficient amount resulting from the foreclosure, she will have to pay it to the lender. If the property is damaged and has been already demolished, then your mother will never be able to get a refinance on it.
Thanks
If your mother is unable to pay off the mortgage, the lender will have the right to foreclose the property. If there is a deficient amount resulting from the foreclosure, she will have to pay it to the lender. If the property is damaged and has been already demolished, then your mother will never be able to get a refinance on it.
Thanks
The best thing for you to do is auction the property, or sell it to one of the adjacent property owners for an amout equal to pay off the loan, so that you will be rid of the liability. If it is demolished, you will never be able to get a loan on it. It is probably not producing you any rental income, so what good is it to you? Get rid of it!
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