quit claim deed

Guest

We are going bankrupt, and we are going to rent. Our parents have offered to buy us a house to rent to us. They will have a mortgage on the home. And when we are capable of buying the rental house from them we will. Their fear is that my father-in-law is 81. What if he passes away before we buy the property from them. Would a quitclaim deed help gaurentee we get the home in this instance? Would it put us on their mortgage? Or do we need to qualify for the mortgage? What happens if we don't qualify for the mortgage? We are filing ch 7, and expect to be discharged on March 1, 2008. Or do we try and have her parents refinance in say June 2008, and put our names on the mortgage?

Guest

You can lease the property currently and then request your father-in-law to sign over a Transfer-on-death/beneficiary deed so that ater his death, you and your wife gets the property in your names. But that will be simply transferring ownership rights over to you; it is not buying because you need not pay.

However, while the transfer on death deed is being made effective, your mother-in-law can get the home purchase price from you or else you can pay her a certain amount less than the pruchase price when you assume ownership through the deed.

jenkin7 · Posted: Wed Oct 10, 2007 12:23 am Post subject:

Hello Guest,

You can make a lease-to-purchase contract right now, so that you can buy the rented property after a fixed period of time as mentioned in the contract. According to this contract, whatever monthly rent you pay, a portion of it generally goes to the purchase price of the house.

Regarding the quit claim deed, after your father passes away your mother has to get the whole property in her name first and only then she can quit claim it to you. By this, the loan still remains in her name and you have to refinance the mortgage to get it in your name. But I am afraid, if you are filing bankruptcy chapter 7, you may have to face trouble in doing so.

Guest

Hi,
If you want to go for the quitclaim deed, you have to let the mortgage company know about it. Without their permission you can not do it. I think rather than going for mortgage or refinance, which is almost impossible for your present circumstances, you can make a deed that will make you enable to own the property after your parents’ death and you can pay the amount to your parents say as installment from now on.

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