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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1519
Location: florida
281.04 Dollars($)
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Post subject: RE: Paying for home loan and HOA dues |
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Hi Owen,
I don't think that buying the house is necessary. There are two ways to handle this situation. First of all, if you ask your mother-in-law to quit claim the property to you, she can do so but she should inform the lender about it as the latter has an interest in the property (as he has offered the loan against the house). But the quit claim does not transfer the mortgage. So, your mother-in-law has to transfer the loan in your name through Novation. Then you can start paying for the loan and refinance when its suitable for you.
Secondly, if you don't wish to go into the above process, you can ask your mother-in-law refinance the loan in your name and transfer the property-title to you at the day of the loan closing. You may use a quit claim deed to get the title transferred in your name. And, whether you will have to pay a large sum will depend on the type of refinance loan taken, the interest rate and fees charged.
Know all about How to Refinance if you are interested to choose this option.
Thanks,
Caron. |
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avpdays
Guest
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Post subject: what is best way to purchase property with parent? |
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Hi-
My parents are willing to help me purchase a home due to my poor credit history (i signed for a motorcycle for an ex who defaulted on the loan, along with my own pre college credit card debt that I didn't take care of properly). I am just finishing up on paying off all my debt, and have a great steady income. Since my parents credit history is steller we've talked about them purchasing the house and me making the payments and holding the title to the house alone. I just don't know what the best way to go about this...I'm concerned with taxes due on transfer of ownership/gift? and my financial responsibilities (and tax benefits/write offs), and other matter such as "due on sale" if we do a quitclaim deed. Is there a way for me and my mother to purchase together? Or will my poor credit increase interest rate on morgate despite her excellent credit? Should I just wait to get my credit score higher? Your input is greately appreciated. Thank You. |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 2650
Location: New Brunswick, New Jersey
489.32 Dollars($)
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Post subject: RE: Wait for good score to get home loan |
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Hi,
| Quote: | | Should I just wait to get my credit score higher? |
If you intend to buy the house on your own by taking a mortgage in your name only, then you can definitely wait for your score to get higher so that you can qualify for better interest rates in future.
Thanks,
Sara. |
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Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1609
Location: MASSACHUSETTS
150.97 Dollars($)
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Post subject: RE: |
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Hi avpdays,
| Quote: | | Is there a way for me and my mother to purchase together? Or will my poor credit increase interest rate on morgate despite her excellent credit? |
You can make your mother the primary borrower on the loan while you become the co-borrower. Since your mother has excellent credit, so she can get qualified for a home loan and thereby secure a reasonable rate of interest. Otherwise, your poor credit will not allow you to avail a better rate.
After your mother gets the loan, she can transfer it to you by novation and quit claim the property to you. So, you will be getting the interest in the property and at the same time you will also be liable for monthly payments on mortgage. But one needs to request the lender for the Novation as he may or may not allow for it.
Alternatively, you can also shop around for a lender who will offer you a loan program at your credit score and income. You say that your credit isn't favorable enough to get a good rate. But you do have good income, so you can start shopping with a number of lenders in order to choose the best out of them.
Feel free to clarify your doubts.
God bless you
Samantha.
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Charles
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Post subject: the best way to qualify for good interest rates |
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| I think the best way to go about it is to wait till you can build up good credit score which will in fact help you to qualify for loans at affordable rates of interest. |
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lyod
Guest
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Post subject: |
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| If the loan has a due on sale clause, then your mother cannot quit claim the property if she takes a loan against the house. The clause gives the right to the lender by which he can demand the outstanding loan balance from the borrower. |
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 808
Location: OHIO
435.79 Dollars($)
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Post subject: RE: Improve credit or get bad credit mortgage |
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Hi Avpdays,
| Quote: | | I'm concerned with taxes due on transfer of ownership/gift? and my financial responsibilities (and tax benefits/write offs), and other matter such as "due on sale" if we do a quitclaim deed. |
If your mother takes a loan as primary borrower in order to purchase the house and then transfers you the interest through quit claim, then she needs to pay Gift tax under certain circumstances. It's not your liability to pay the gift tax. And, as far as getting tax benefits are concerned, you may be able to receive tax deduction on mortgage interest after the loan is transferred in your name. But there are certain conditions under which you can qualify for this deduction.
For more idea on the Tax deduction on interest , refer our previous discussion. Also, know about the Tax Implications of Quit Claim .
Regards,
Jessica.
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http://jessica.mortgagefit.com/ |
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NeedHelpinGA
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Post subject: Quick Claim Deeds and Minor Children -- Foreclosure |
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| My dad has the house mortagage and about 3 yers ago he QC the deed to me and my siblings (7 of us and 3 are minors). In August the mortage company began foreclosure proceedings. We all agreed to QC the deed again in my name only so that I could secure the property. The foreclosing mortgage company has agreed to a selling price, and I have a lender to do the loan, but NOW I find out that our father could not sign the QC deed on behalf of the minor children in order to convey the property to me and that the only way to do so is via a legal guardian authorized by the probate court. Is this true? Are there legal forms or affavidits that would take care of this or do we have to go through court proceedings. In the meantime the foreclsoure auction is scheduled for early Dec. What shall I do? |
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blue
Joined: 21 Oct 2005
Posts: 1131
Location: MARYLAND
138.04 Dollars($)
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Post subject: |
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Hi,
| Quote: | | in order to convey the property to me and that the only way to do so is via a legal guardian authorized by the probate court. Is this true? |
Yes it is true that a guardian will have to be appointed as the law states that minors can receive property title but they can not convey title until they become 18 years old.
Your father had quit claimed the house in name of 7 seven of you, this way the three minors also received the title of the house which legally they can acquire but afterwards your father cannot sign on their behalf.
Thanks
Blue
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colin
Moderator
Joined: 30 Jun 2006
Posts: 582
Location: Waltham, Massachusetts
112.65 Dollars($)
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Post subject: |
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Hi,
I agree with Blue, for the transfer of ownership of the 3 minors now, the court will have to appoint an independent guardian to represent them, as minors cannot enter into a legal contract as per law and even as their father you will not be in a position to take decision affecting their ownership rights in the house.
| Quote: | | In the meantime the foreclsoure auction is scheduled for early Dec. What shall I do? |
You should explain this situation to the mortgage company and request them to delay the date fixed for the foreclosure auction. As the situation will get solved as soon as the ownership held by the 3 minors gets transferred.
In my opinion the mortgage company will agree to delay the foreclosure as they normally do not intend to foreclose as long as there is a possibility that the borrower will be able to repay.
Thanks
Colin |
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NeedHelpinGA
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Post subject: |
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| Thank You!! I will contact the mortgage company to request a delay until this process can be taken care of. However, they have delayed it once already, hope they will be willing to do so again. Thanks again |
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ohio law
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Post subject: transfer deed? |
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my ex wife passed away, during our divorce i signed over the house with a quick claim deed and the mortgage is in my name..her mother has power of attorney(Not on paper,it was a verbal agreement) will her mother be able to sign it back over to me by just filling out another deed and signing her daughters name on it or will we need a lawyer?
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blue
Joined: 21 Oct 2005
Posts: 1131
Location: MARYLAND
138.04 Dollars($)
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Post subject: |
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Hi,
Welcome to Mortgagefit forum.
Sorry to hear about the passing away of your ex-wife.
Your ex wife's mother has a verbal power of attorney. But to have any legal affect the power of attorney should be properly made and notarized. With the verbal power of attorney she won't be in a position to take decision regarding her daughter’s property matters.
Let me also tell you that if at the time of death she had given the house to her mother by making a will then she would be able to transfer it in your name if she wishes.
You will have to contact a lawyer in this situation.
Thanks
Blue
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1519
Location: florida
281.04 Dollars($)
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Post subject: RE: quit claim by person having verbal power of attorney |
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Hi Ohio,
Since your ex-wife's mother has only a verbal power of attorney, she is not the legal owner of the property and hence she cannot transfer the it through quit claim, that too, in the name of your ex-wife. She can only covey property to someone provided her name is on the Will made by your ex-wife.
In case, there is no such Will, the court will distribute the property interest through Intestate Succession.
Thanks,
Caron. |
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lilly
Guest
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Post subject: my brothers house |
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My brother purchased a house. I was a cosigner. Our plan was for me and my kids to stay with him and help pay the mortgage. Plans did not go as I thought. The house is only two years old. I have now moved out and he refuses to pay the mortgage.
I want to do a quit claim deed to say I have nothing to do with the property. What is the best way to go about this? Also if I get a quit claim done will I be entitled to pay any outstanding amounts he ows?
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