Posted on: 05th Oct, 2009 02:25 pm
my mother-in-law can no longer afford to make her mortgage payments. she asked if her son and i take over payments in return, give us the house. problem is, our credit isn't that great due to bancruptcy about 5 years ago and a loan will not go through. we were living off of one income because spouse was no longer working.
would a quit claim deed help us? we are paying the mortgage but what happens if my mother-in-law passes (god forbid)? will we be able to claim the house?
would a quit claim deed help us? we are paying the mortgage but what happens if my mother-in-law passes (god forbid)? will we be able to claim the house?
hi patsy,
if your mother-in-law signs a quitclaim deed, it would only help her to transfer the property in your name. it won't transfer the mortgage in your name. in order to transfer the mortgage in your name, you will have to refinance the loan. however, as you have a bad credit, it would be difficult for you to get a refinance.
once the transfer of the property is complete, the lender would want you to refinance the loan in your name. if your mother in law passes away and if you continue with the mortgage payments, then you would be able to save the property. however, if you stop the payments, the lender would foreclose the property.
thanks
if your mother-in-law signs a quitclaim deed, it would only help her to transfer the property in your name. it won't transfer the mortgage in your name. in order to transfer the mortgage in your name, you will have to refinance the loan. however, as you have a bad credit, it would be difficult for you to get a refinance.
once the transfer of the property is complete, the lender would want you to refinance the loan in your name. if your mother in law passes away and if you continue with the mortgage payments, then you would be able to save the property. however, if you stop the payments, the lender would foreclose the property.
thanks