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marilyn_huntcollins · Joined: 13 Oct 2009 Posts: 5 1.92 Dollars($)

Hi,
My husband and I has been living in his moms house since 1999 and paying the mortgage. She doesn't want anything else to do with the home. How can we take over the property and release her from the loan? Our credit is not good at all but we need to find the steps needed to follow on this matter.

jveenstra · Posted: Tue Oct 13, 2009 10:38 am Post subject: Mortgage

If you have been paying the mortgage for Mo since 1999, that is a form of credit that is good.

Does Mom by any chan have an FHA mortgage. I ask that because they are assumable and you may be able to assume the mortgage into your names.

You indicate credit is not good? You need a credit score of 620 or higher to purchase the property from Mom with a new mortgage in your name. You do not need any money becausthis can be done with a gift of equity, howevere, if credit score is under 620, this will not work.

I know of nothin else to suggest.

marilyn_huntcollins · Joined: 13 Oct 2009 Posts: 5 1.92 Dollars($)

What else can be done to help the situation. Can you quick deed it to us and then we accept the loiability through the bank

jveenstra · Posted: Tue Oct 13, 2009 11:04 am Post subject: Mortgage

You could quit claim deed the property into your names. That puts the property in your names, however, it does nothing as far as the mortgage is concerned.

As a matter of fact, it could be a not so good thing. Putting the property in your names technically triggers the due on sale clause for the existing mortgage. That means, if the mortgage company finds out, they can call the loan due in full. They probably would not find out unless you told them or stopped paying the mortgage. However, if they call the loan due in full and your credit, income etc is such that you can not refinance with a new mortgage, they could start to foreclose.

You probably would inherit the property some day? If that is the case, do not quit claim deed into your names. Pursue assuming the mortgage or buying with a gift of equity, which, once again, only works of credit and income qualify.

marilyn_huntcollins · Joined: 13 Oct 2009 Posts: 5 1.92 Dollars($)

Thanks John

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How can I take over a loan and release someone from their liability