Posted on: 24th Oct, 2008 08:36 am
my husband and i have been living in a house that is owned by his mother for the past 2 1/2 years and have essentially been paying the mortgage on the house. she moved into a condo because the house was too much for her and we want to buy the house but our credit is not the greatest. she has a mortgage with country wide and apparently it is not a fixed mortgage since her payments have been escalating over the last few months. we have been giving her additional money than what was originally agreed upon just so she won't lose the house but this is taking a toll on our finances now. she want to do a quit claim deed thinking this will be an easier way for us to buy the house. is this a good idea for us to go this route? i do not want to get stuck paying her rising mortgage premiums since there is no guarantee we will be able to obtain a mortgage of our own. any suggestions you can give to purchase this house without us getting stuck with her payments?
hi shortydog!
welcome to forums!
you have mentioned that your mother-in-law has a mortgage on the property. if she quitclaims the property to you, you will have to refinance the property in order to transfer the mortgage in your name. this is what the lenders prefer.
if you cannot refinance, then you will have to go for the process of novation. however, it will be the discretion of the lender to decide whether he will agree on novation or not.
feel free to ask if you have further queries.
sussane
welcome to forums!
you have mentioned that your mother-in-law has a mortgage on the property. if she quitclaims the property to you, you will have to refinance the property in order to transfer the mortgage in your name. this is what the lenders prefer.
if you cannot refinance, then you will have to go for the process of novation. however, it will be the discretion of the lender to decide whether he will agree on novation or not.
feel free to ask if you have further queries.
sussane
Hi shortydog!
Though your mother-in-law quitclaims the property in your name, the mortgage will be there. The lender will ask you to refinance the property once the ownership is changed. You can try the option of owner financing.
Thanks.
Though your mother-in-law quitclaims the property in your name, the mortgage will be there. The lender will ask you to refinance the property once the ownership is changed. You can try the option of owner financing.
Thanks.