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MsKristy19 · Joined: 13 Oct 2009 Posts: 1 1.00 Dollars($)

Hello,

Kind of a complicated situation. My Grandmother (as of now, still in good health) had her house remodeled in 1997, it was a city beautification project that offered low interest, deferred loans to low income folks. The amount was around 34000. She has not paid anything on this loan and likely will not before she eventually dies.

She wants the house to go to me and my husband (we live with her and are starting to save up the money to pay off the loan, but it won't be quick). I am wworried that the city will not allow us to keep the house after she dies, because of the loan/lien.

Is there anything we can do now to help? Do you think the city would just take the house?? Would a bank maybe loan us the money to pay the city and then we'd pay the bank?

Any help/advice is appreciated.
Thank you.

adonis · Posted: Tue Oct 13, 2009 10:13 pm Post subject:

Welcome MsKristy,

You can refinance the loan and pay off the dues in order to save the property. If you have a good income and credit score, it won't be difficult for you to get a mortgage from a bank. In case if you are unable to pay off the loan, then the city has the right to foreclose the property.

In order to refinance the loan, you can contact the local lenders of your area and check out the rates and terms. This will help you know whether or not you can afford the loan. You may even seek a no obligation free mortgage consultation from the lenders of this community. This will let you know whether or you would get a loan.

Posted: Wed Oct 14, 2009 11:13 am Post subject: Thanks and question

Thanks for the advice.

But since we don't technically own the home, how would we refinance?

smithsussane · Posted: Wed Oct 14, 2009 9:18 pm Post subject:

Hi Guest!

Welcome to forums!

Your grandmother will have to transfer the property in your name. She can sign a quitclaim deed and transfer the property to you. Once that's done, you can refinance the loan in your name.

Feel free to ask if you've further queries.

Sussane

Guest

Is there a way to have all 3 of our names on the title (hers, me and my hubby) and NOT have the loan come due immediately? So, that we could save up money and then when she passes if it's not paid off then we could refinance or get a loan of some sort?

Or is the best thing to have her off of it completely and get the loan for me and hubby now?

Also, should I contact a lawyer for all this?

adonis · Posted: Sun Oct 18, 2009 8:19 pm Post subject:

Welcome back Kristy,

It would be a good option to remove her from the property deed and get the loan refinanced in your name. In order to transfer the property in your name, you can ask your grandmother to sign a quitclaim deed. The deed can be drafted by an attorney. However, sample quitclaim deed forms are also available online. You can get hold of these forms and transfer the property in your name. Once the transfer is done, you can contact your lender and refinance the loan.

Guest

Thank you for the added info.
I understand about the quitclaim deed. But then you say "you can contact your lender and refinance the loan"

What lender would this be? Me and hubby have no lender. And the original lender to my Grandmother is the City of Modesto, not a bank. And we were told that her loan can't be transferred to us.

And what happens if we do transfer the deed and then we can't refinance? Can we find out if we'd qualify before doing it?

smithsussane · Posted: Tue Oct 20, 2009 12:52 am Post subject:

Hi Kristy!

Welcome back to forums!

If the City of Modesto is your lender, then they would help you in refinancing the loan. As you've mentioned that the bank will not transfer the loan to you, I think you won't be able to refinance the loan.

If the deed is transferred in your name and you can't refinance the loan, the lender may call the loan due immediately.

Feel free to ask if you've further queries.

Sussane

Guest

So, if we can't refinance and we need to get our names on the deed but that could make the loan due, then how in the world would we get the money to pay it off?
This is so frustrating and stressful. We aren't rich and never will be and this house is all we really have and apparently we don't really have it.

Posted: Tue Oct 20, 2009 9:16 pm Post subject:

It is tough situation for you. Your best bet would be to sell off the property and live in a rental property for the time being. You can then improve your credit score and purchase your property.

Guest

Well, my and my hubbys credit score is already excellent, we just don't have any euity since we've been living in my Grandmothers home. The home is worth less than 70k, so i don't know that selling it is the best thing either.
Thanks for your response!

raymond · Posted: Sun Nov 01, 2009 3:12 pm Post subject:

>>But since we don't technically own the home, how would we refinance?

Your Grandmother would refinance her home with a Reverse Mortgage, paying off the $34,000.00 lien, and receive a monthly check until she passes (tax free). You'd inherit the house, pay back the Reverse Mortgage what's due them, and keep the house. That'll give you time to save money so you can pay the Reverse Mortgage Lender back, her debt is paid, and you all get to live in the house without a monthly mortgage payment.

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