Posted on: 20th Sep, 2007 05:54 am
Hi all
I have a multi level question here.
My dad owns the Co-op I currently live in.
He is willing give it to me for what he paid for it.
We are basically trying to help each other out.
I am resently divorced and left with all the debt
about $60,000 worth.
So I wanted to know can he transfer the coop to me, I then get a home equity line on the coop, pay him and pay my debts?
I am having a hard time finding home equity lenders on coops. Or is it possible to get a mortgage for the $180,000 even though I am only paying $120,000 for the property?
Thank you in advance.
I have a multi level question here.
My dad owns the Co-op I currently live in.
He is willing give it to me for what he paid for it.
We are basically trying to help each other out.
I am resently divorced and left with all the debt
about $60,000 worth.
So I wanted to know can he transfer the coop to me, I then get a home equity line on the coop, pay him and pay my debts?
I am having a hard time finding home equity lenders on coops. Or is it possible to get a mortgage for the $180,000 even though I am only paying $120,000 for the property?
Thank you in advance.
Hi, now that the co-op is owned by your father. I think he can transfer it to you, even if you are debt.
hey,
sorry about the divorse it can be a pain. i have limited experience with coops and they are tricky. the reason why there is not too many lenders that want to deal with coops is because coops are owned by the community that lives in the coop and they can deside who lives there and who doesnt and can make their own rules as to how the property is sold/bought ect.
if your father owns the coop outright then you want to first take a look at his papers that he got from the coop management. there should be rules and regulations regarding property transfers and ownership rights.
the next place you want to visit is the coop management. talk to them they will be able to tell you what needs to be done and can likely direct you to the lender that speciallises in coops.
you want to talk to the lender to see if you are going to be able to borrow the money you need to pay your father back concidering you owe all that money from your divorse.
then if everything checks out you can have your dad transfer property and refinance it in your name up to the ammount allowed by the lender. and you can borrow as much as the lender alows based on the true value of your property and not what it sold for but you might have to wait 6-12 months before a lender can use that new value.
another way you can go about it is just to buy it from your father but talk to coop management first.
sorry about the divorse it can be a pain. i have limited experience with coops and they are tricky. the reason why there is not too many lenders that want to deal with coops is because coops are owned by the community that lives in the coop and they can deside who lives there and who doesnt and can make their own rules as to how the property is sold/bought ect.
if your father owns the coop outright then you want to first take a look at his papers that he got from the coop management. there should be rules and regulations regarding property transfers and ownership rights.
the next place you want to visit is the coop management. talk to them they will be able to tell you what needs to be done and can likely direct you to the lender that speciallises in coops.
you want to talk to the lender to see if you are going to be able to borrow the money you need to pay your father back concidering you owe all that money from your divorse.
then if everything checks out you can have your dad transfer property and refinance it in your name up to the ammount allowed by the lender. and you can borrow as much as the lender alows based on the true value of your property and not what it sold for but you might have to wait 6-12 months before a lender can use that new value.
another way you can go about it is just to buy it from your father but talk to coop management first.
hello jean,
the idea seems to be ok. but if there is a mortgage already on the condo, then you need to take out a home equity line of credit and pay off the debts. considering it will be a second mortgage on the property and offering you comparatively higher rates than a first, i would suggest that you refinance the loan in your name and then pay your dad for the property and the rest can be put in towards debt payments.
the idea seems to be ok. but if there is a mortgage already on the condo, then you need to take out a home equity line of credit and pay off the debts. considering it will be a second mortgage on the property and offering you comparatively higher rates than a first, i would suggest that you refinance the loan in your name and then pay your dad for the property and the rest can be put in towards debt payments.
Hi-
Coops are not something most lenders will do unless they are common to the area, like NYC. But it can be done. If you are a new owner, some banks will only give you the lesser of the purchase price or appraised value, but explain it was a family sale and they may allow for a higher loan amount. Another strategy may be this: have your deed quit claim the coop over to you. So know you are the owner and can do what you want. You can then get the HE Loan in your name, pay off your dads mortgage and your debts. If you do that, you also want to look at a fixed rate mortgage. It will give you a lower rate and a 30 year payback for a lower payments. Last you want is to have a loan that hurts your cash flow- then you get your debts high all over again. You can always pay more on a longer loan.
Good luck.
Coops are not something most lenders will do unless they are common to the area, like NYC. But it can be done. If you are a new owner, some banks will only give you the lesser of the purchase price or appraised value, but explain it was a family sale and they may allow for a higher loan amount. Another strategy may be this: have your deed quit claim the coop over to you. So know you are the owner and can do what you want. You can then get the HE Loan in your name, pay off your dads mortgage and your debts. If you do that, you also want to look at a fixed rate mortgage. It will give you a lower rate and a 30 year payback for a lower payments. Last you want is to have a loan that hurts your cash flow- then you get your debts high all over again. You can always pay more on a longer loan.
Good luck.
HI
I wanted to give an update...I spoke with a RE attorney. We are going to transfer the coop to me. There is currently no mortgage on the property. I am then going to a cash out refi. We'll see how it goes. Thanks for your help J
I wanted to give an update...I spoke with a RE attorney. We are going to transfer the coop to me. There is currently no mortgage on the property. I am then going to a cash out refi. We'll see how it goes. Thanks for your help J
Hi,
Try out with the cash-out refinance and do let us know what happen next.
Try out with the cash-out refinance and do let us know what happen next.