Posted on: 01st Jul, 2008 06:44 pm
A friend wants to leave her the state and sell her house to her son. He did not qualify for an loan because he hasn't been at his job long enough and little credit. As an investor, what are the risks of using a quick claim deed to transfer the property ownership while keeping the mortgage in tact. The son pays one year lease option to me, the investor, I keep an extra share, pay mortgage and report to credit agency. At the end of the year the son gets mortgage and pays mom cash and has record of credit. If son can not still get mortgage he can still lease of I can sell to another investor so that mom gets her cash. :?: :?
Welcome locysbrown.
Quitclaim deed doesn't assure you that the title is free from any lien. As it is a mortgaged property your friend will have to use the quitclaim deed.
By the way after signing the quitclaim deed your friend son will be the owner. But has your friend taken consent from the lender?
Quitclaim deed doesn't assure you that the title is free from any lien. As it is a mortgaged property your friend will have to use the quitclaim deed.
By the way after signing the quitclaim deed your friend son will be the owner. But has your friend taken consent from the lender?
Do not use a quitclaim deed on an arms-length property transfer. Use a warranty deed.
You will have to contact the mortgage company if you want to assume the mortgage. Otherwise, finance yourself.
You will have to contact the mortgage company if you want to assume the mortgage. Otherwise, finance yourself.
