Posted on: 07th Mar, 2008 12:00 pm
whats the process of assuming mortgage? my parents wants to add me and my husband on the title so we can refinance the remaining balace of the mortgage later on... but the mortagage company says that we better just do the assuming mortgage because we will be automatically on the title and we dont have to refinance the house...my parents are planning to do bankruptcy thats why she wants us to take over the other house, but are we still gonna be hurt if we did this assuming mortgage and my parents file for bankruptcy...please help needs some opinion of the best way to go.
Hi wetseal,
Welcome to the forum.
If the lender allows you to assume the mortgage then it should not be much of a problem for you to do it. After the mortgage assumption you will be liable to pay the mortgage. You will also have to pay a assumption fee.
But I think as you parents are going to file bankruptcy, it is better not to quitclaim the property now. Because if your parents quitclaims just before filing BK then it may be regarded as an fraudulent conveyance.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
If the lender allows you to assume the mortgage then it should not be much of a problem for you to do it. After the mortgage assumption you will be liable to pay the mortgage. You will also have to pay a assumption fee.
But I think as you parents are going to file bankruptcy, it is better not to quitclaim the property now. Because if your parents quitclaims just before filing BK then it may be regarded as an fraudulent conveyance.
Feel free to ask if you have any further questions.
Best of luck,
Larry
larry,
thanks for the reply...about the bankruptcy situation...my parents has 2 home and im already staying on the other house and paying the mortgage every month for about 6 moths now thou the mortgage is still on there name...and thats the reason why we need to do the assuming mortgage because of the bankruptcy situation... are my parents gonna be in trouble for doing this
thanks for the reply...about the bankruptcy situation...my parents has 2 home and im already staying on the other house and paying the mortgage every month for about 6 moths now thou the mortgage is still on there name...and thats the reason why we need to do the assuming mortgage because of the bankruptcy situation... are my parents gonna be in trouble for doing this
Hi wetseal,
Welcome back.
If you can buy the house from your parents from your lender, then that is ok. But if your parents only quitclaim the house to you then it may arise a problem for them.
Best of luck,
Larry
Welcome back.
If you can buy the house from your parents from your lender, then that is ok. But if your parents only quitclaim the house to you then it may arise a problem for them.
Best of luck,
Larry
well we are gonna buy the house but because of all the fees that were trying to avoid and the closing cost and all these down payments and requirements that they need...thats why were just gonna do the quit claim and assume the mortgage but if you think thats not a good idea, i dont kn ow what options i have...the lender already sent a warranty deed and we just need to go to do recording but now im afraid because i dont want my parents to be in trouble for that and i just wanna make sure it wont affect me if they file bankruptcy...i dont know what to do please need advice
Hello Wetseal,
You probably will be better off purchasing the property from your parents. There will be closing costs involved but at least you do not have to worry about any repercussions. You will not be affected and your parents will get that property out of their name. You will be able to get a lower monthly payment considering that your score and payment history is in great conditions.
Hope that helpw Wetseal,
Jean Smith, LO
Representative
NCI Mortgage
cell--757-338-1889
office-888-773-3746
You probably will be better off purchasing the property from your parents. There will be closing costs involved but at least you do not have to worry about any repercussions. You will not be affected and your parents will get that property out of their name. You will be able to get a lower monthly payment considering that your score and payment history is in great conditions.
Hope that helpw Wetseal,
Jean Smith, LO
Representative
NCI Mortgage
cell--757-338-1889
office-888-773-3746
