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 Connectionsbetweenus
Joined: 08 Apr 2007
Posts: 1
1.62 Dollars($)
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 Posted: Sun Apr 08, 2007 11:48 am Post subject: Purchasing a Home through Quit Claim / Refinance -- legit? |
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We have been given an offer to purchase a home from the owner who needs to get out from under his mortgage. Apparently, he purchased a lot of properties and now cannot manage all of them.
He wants to quit claim the house to us and have us make his mortgage payments for one year, then we would refinance the loan.
Is this legitimate? Is it a good deal for us and helps him out too? Or is it a rip off?
What things should we ask? What information should we find out? This is our first time buying. Who do we speak with? |
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john5322
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0.10 Dollars($)
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| Posted: Sun Apr 08, 2007 11:58 am Post subject: |
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A quit claim deed can be used for transfer of ownerhip in your name, but first get in touch with the lender to know if he will allow you to continue the payments and then have the mortgage refinanced or not.
Use of quit claim deed is legitimate, no problems with that but consult an attorney on how to properly make out the deed so that transfer occurs correctly.
John |
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john5322
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0.10 Dollars($)
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| Posted: Sun Apr 08, 2007 12:01 pm Post subject: |
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| and if possible do a title search to know if he actually holds clear title to the property. |
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sara
Joined: 05 Jul 2006
Posts: 1206
Location: New Brunswick, New Jersey
223.95 Dollars($)
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| Posted: Sun Apr 08, 2007 9:00 pm Post subject: RE: Buying home and then refinancing |
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Hi,
I don't think it is legal from the lender's perspective. This is because as far as I can understand, may be the owner will sell the property to you and have you get the title by signing on a quit claim deed. He will then let you make the payments without informing the lender as to who is paying for the loan.
You can refinance the loan in your name currently also. A refinance will be beneficial if you can secure an interest rate which is 1.5-2% lower than the current rate on the loan.
The owner will get some help provided you make the payments on the loan taken against one of his properties. It will certainly reduce his debt payments.
I am not aware as to what type of loans you will be considering for the refinance, so I cannot comment on whether it will be a great deal. But, it can definitely be a good choice provided you get along with a reasonable interest rate and monthly payments that you can manage.
Thanks,
Sara |
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Clifford Berry
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0.10 Dollars($)
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| Posted: Tue Apr 10, 2007 6:21 pm Post subject: |
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As Sara said lender might not agree to such an agreement where you will continue making payments on this person's name and then refinance after one year. You should first get in touch with the lender and know what he says about it.
Clifford Berry |
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blue
Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND
137.64 Dollars($)
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| Posted: Wed Apr 11, 2007 2:34 pm Post subject: |
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| Quote: | He wants to quit claim the house to us and have us make his mortgage payments for one year, then we would refinance the loan.
Is this legitimate? |
Like what all have said, if you tell the lender and he agrees to this plan then you can go ahead with it but if the lender is kept in dark then you may face problems.
Blue |
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