Posted: Thu Oct 22, 2009 7:11 pm Post subject: Quit Claim Deeds
My uncle, brother & I recently inherited a house from a relative. My uncle is the executor of the will. There is a $27,000 mortgage out on the house (2nd mortgage). None of us want the house but we have a buyer lined up. Due to the poor condition of the home, a bank will not finance its purchase. Our buyer (a long time friend of mine) wants to buy the house, obtain a quit claim deed, and finance it through us for 2 years while he fixes it up. Once it meets housing codes, he will finance it through a bank and pay us the balance on the loan he took through us.
We all trust the buyer so that is not an issue nor is his ability to make the monthly payments to us. Our question is, in Ohio will the bank currently holding the 2nd mortgage call the loan if/when they find out the quit claim deed has been filed? None of us can pay off the loan at this time but the buyer has agreed to a contractual clause stating he will pay off the outstanding 2nd mortgage if the bank calls the loan.
You need to check out your loan documents to find out if there is a due on sale clause mentioned in it. If the mortgage doc mentions such a clause, then the lender can call the loan due immediately after the property is sold off. If there is no such clause mentioned, then the lenders may not ask you to repay the loan immediately. _________________ Procrastination is the enemy of your financial sucess
adonis
