Posted on: 04th Jan, 2009 09:59 am
we have lived in out home about 10 years now and have had 3 kids and are starting to out grow it.. my sisters are moving here from out of state and are looking for a home(bad credit)they cant finance, me and the wife has had our eye on a house for a while now and was thinking if we could sell our house to the sisters we could move into the bigger house.. how would i go about this? we did refinance 2 years , can my sisters take over the house? or do they just pay me and i pass on the payments?
thanx dave
thanx dave
Hi waspkfd!
Welcome to forums!
If you are selling the property to your sister and her family, then you can use a warranty deed to transfer the property in your sister's name. Once the ownership of the property is transferred in your sister's name, the lender may want her to refinance the mortgage in her name. As you have mentioned that your sister does not have a good credit, there are chances that she will not be able to refinance the mortgage in her name. So she should first try to improve her credit. To know more about improving credit, check out the following link:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Moreover, you should also check out the mortgage docs properly and see if there is a due on sale clause mentioned in it. A due on sale clause means that the lender will call the mortgage due immediately once you sell off the property.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
If you are selling the property to your sister and her family, then you can use a warranty deed to transfer the property in your sister's name. Once the ownership of the property is transferred in your sister's name, the lender may want her to refinance the mortgage in her name. As you have mentioned that your sister does not have a good credit, there are chances that she will not be able to refinance the mortgage in her name. So she should first try to improve her credit. To know more about improving credit, check out the following link:
http://www.mortgagefit.com/credit-rating/credit-repair.html
Moreover, you should also check out the mortgage docs properly and see if there is a due on sale clause mentioned in it. A due on sale clause means that the lender will call the mortgage due immediately once you sell off the property.
Feel free to ask if you have further queries.
Sussane