Posted: Wed Mar 26, 2008 11:53 am Post subject: Property transfer?
A neighbor of my mother in law is walking away from his land and mobile home as he no longer wants it and has agreed that I can have it for the price of the reminder of his mortgage. I have been paying the mortgage payments for a few months but would like to know what my options are for obtaining this legally in my name without having to apply for a mortgage (as I am overextended right now). Currently we have both signed a lease document stating that I am leasing with an option to buy. What should my next step be, Quit Claim deed, Assumption of mortgage??
Thank you in advance for any suggestions.
Posted: Thu Mar 27, 2008 3:23 am Post subject: RE: lease to buy option
Hi Shell,
Since you are signing on a lease to buy agreement, it implies that you will be renting on the property for a few years as specified in the agreement and then only you can buy it. How long does the lease last for? Also, since you are buying at a price equal to the balance of the mortgage, you need to make an agreement which states that the purchase price will be equal to the total payment you'll make.
I think you better take help of a real estate attorney in drafting the agreements as these are legal issues, and the attorney is the right person to better manage them.
Assumption of mortgage is completely different from lease to buy option. You need it only when you are buying someone's property while at the same time taking responsibility of his mortgage payments.
Posted: Fri Mar 28, 2008 8:39 am Post subject: Property transfer?
The lease with option is for 2 more years and it states that the purchase price will be the payoff amount of the mortgage at the time I purchase. The lease also states that I pay the mortgage directly and the total amount I pay goes toward the mortgage. I am interested in getting it put in my name, that is why I was wondering if there were other options of what I could do. The owner would be willing to do whatever I suggest as he does not want the property at all. I would just feel more comfortable from a legal point of view it it were in my name (as I have been remodeling it). What are your suggestions?
Posted: Sat Mar 29, 2008 2:38 am Post subject: RE: lease to buy option and mortgage payments
Ok so if the lease option is for 2 years and the purchase price is equal to the pay off amount at the time of purchase, then I think you shouldn't be paying now. Rather, you should allow the current owner to pay for 2 more years. Then you will have to pay purchase price equal to the outstanding mortgage balance at the end of the 2 year period. And you need to pay it once in a lump sum amount.
I think you should talk to the owner and sort out this discrepancy in payemnts. As far as I understand from the contract, he should be paying now and not you.
larry
