Posted on: 30th Nov, 2007 11:06 am
Hello
a friend of my mine wants to quitclaim his property to me so he can get money out of the equity to fix other homes he has. He lost 2 homes due to foreclosure. He could'nt get those houses rented out because of some repairs needed to be done. He has several homes and doesn't want to lose them. By transferring or quitclaiming it to me He will pay me money for it while some of that money will stay in an escrow for 6 months. I will in return quit claim it back to him. THIS IS ALL NEW TO ME. BUT IS THIS LEGAL AND POSSIBLE TO DO? I qualify as a 1st Time Home Buyer although my credit score is 615. By doing the transaction with him would raise my score to 700. WHAT ARE AT RISK FOR ME TO DO HIM THIS FAVOR THAT CAN ALSO BE A BENEFIT TO ME??????????
a friend of my mine wants to quitclaim his property to me so he can get money out of the equity to fix other homes he has. He lost 2 homes due to foreclosure. He could'nt get those houses rented out because of some repairs needed to be done. He has several homes and doesn't want to lose them. By transferring or quitclaiming it to me He will pay me money for it while some of that money will stay in an escrow for 6 months. I will in return quit claim it back to him. THIS IS ALL NEW TO ME. BUT IS THIS LEGAL AND POSSIBLE TO DO? I qualify as a 1st Time Home Buyer although my credit score is 615. By doing the transaction with him would raise my score to 700. WHAT ARE AT RISK FOR ME TO DO HIM THIS FAVOR THAT CAN ALSO BE A BENEFIT TO ME??????????
hi,
if your friend quit claims his property to you, that will only transfer the ownership rights but the mortgage will still remain in his name. you have to do a refinance to transfer the loan in your name. for that you have to talk to the lender and take his consent before anything else. the mortgage might be refinanced only if you qualify for that.
i am not sure if the lender will allow to sign a quit claim to transfer the ownership back to your friend.
since you will be responsible for the mortgage, regular monthly payments will help you to build your credit but any default will have negative effect on your credit.
if your friend quit claims his property to you, that will only transfer the ownership rights but the mortgage will still remain in his name. you have to do a refinance to transfer the loan in your name. for that you have to talk to the lender and take his consent before anything else. the mortgage might be refinanced only if you qualify for that.
i am not sure if the lender will allow to sign a quit claim to transfer the ownership back to your friend.
since you will be responsible for the mortgage, regular monthly payments will help you to build your credit but any default will have negative effect on your credit.
Hi,
If your friend quit claim the property to you then you will be the co-owner of that property but as the mortgage is in your friends name he will only be responsible for the loan. However, if after the quit claim, if you refinance the mortgage then the loan will be transferred to your name. Now it is up to the lender to accept that as the lender will check your credit score, your source of income and also your present debt situation if any. If you qualify then the lender may allow you to go re-finance. But I would suggest you to consult with a real estate attorney and also speak with the lender to get better information.
Feel free to ask questions.
If your friend quit claim the property to you then you will be the co-owner of that property but as the mortgage is in your friends name he will only be responsible for the loan. However, if after the quit claim, if you refinance the mortgage then the loan will be transferred to your name. Now it is up to the lender to accept that as the lender will check your credit score, your source of income and also your present debt situation if any. If you qualify then the lender may allow you to go re-finance. But I would suggest you to consult with a real estate attorney and also speak with the lender to get better information.
Feel free to ask questions.