Posted on: 04th Feb, 2010 08:43 pm
hi everyone
i had just bought a house 2 months ago and was getting ready to move into it. but just recently i found a bigger house which i fell in love with and planning on buying it. i had leased my current house to the lady that was already living there with her kids for the mortgage payment. the lady offered to buy my house but wants a quit claim deed adding her name so she can refinance it for lower interest . is that possible to do ??? or what should i do ?? is it possible to do novation here ? in other words what is the easiest but safest way for me to sell her the house - she likes it but dont have enough to put down & closing costs.
last question-would being a owner of this house prevent me from buying a second house & keep leasing this ??
thank you[/b]
i had just bought a house 2 months ago and was getting ready to move into it. but just recently i found a bigger house which i fell in love with and planning on buying it. i had leased my current house to the lady that was already living there with her kids for the mortgage payment. the lady offered to buy my house but wants a quit claim deed adding her name so she can refinance it for lower interest . is that possible to do ??? or what should i do ?? is it possible to do novation here ? in other words what is the easiest but safest way for me to sell her the house - she likes it but dont have enough to put down & closing costs.
last question-would being a owner of this house prevent me from buying a second house & keep leasing this ??
thank you[/b]
Hi Ronni,
If you add the lady's name to the title to your current home, she will be considered as a legal owner of the property. What will happen if she is added to the title, but she cannot refinance the property? She will be owner to the property without being liable for the mortgage.
A novation very unlikely in this situation as your current lender would want the lady to refinance and pay off the existing mortgage. If she cannot refinance immediately, I think you should do a rent-to-own type of agreement with the lady. She can pay you rent and live in the property and at the end of a certain period of time, say 1-2 years, she can refinance and have the title transferred in her name.
If you add the lady's name to the title to your current home, she will be considered as a legal owner of the property. What will happen if she is added to the title, but she cannot refinance the property? She will be owner to the property without being liable for the mortgage.
A novation very unlikely in this situation as your current lender would want the lady to refinance and pay off the existing mortgage. If she cannot refinance immediately, I think you should do a rent-to-own type of agreement with the lady. She can pay you rent and live in the property and at the end of a certain period of time, say 1-2 years, she can refinance and have the title transferred in her name.
thank you Jenkin-7 . Can she refinance without being on the title ?? is there a way to assure she is going to be approved for the refinance before i add here ?? ?
Would the lawyer be able to make documents with for example a conditional deed where she has up to 6 months to refinance otherwise i will reverse the deed ????
thanks for your help
thanks for your help
Hi,
A lawyer would be the best person to help you draft the agreement. A clause can be included in the agreement which will legally obligate the buyer to refinance the loan within the specified time. If she fails to refinance, you will lose ownership rights to the property. Talk to an attorney and he will guide you further on this issue.
A lawyer would be the best person to help you draft the agreement. A clause can be included in the agreement which will legally obligate the buyer to refinance the loan within the specified time. If she fails to refinance, you will lose ownership rights to the property. Talk to an attorney and he will guide you further on this issue.
The best thing for you to do is to just have her purchase the property from you. Have her go with a fha mortgage where she only has to put down 3%. You can put up 6% in seller concessions. So if the down payment is the issue you can help her out or with that.