Posts: 121 Location: 760 Lynhaven Parkway, suite 140 Virginia Beach, Virginia 36.24 Dollars($)
Posted: Sat Jun 07, 2008 9:27 am Post subject:
Contact the lender as Larry states because your aunt has to be qualified to refinance the property in her name. When she gets qualified then you can quitclaim and add her on the title. Your lender will be able to work with you and if you get a mortgage quote please click on link
Jeanette Smith
Mortgage Planner
Union Mortgage Group
www.umgva.com _________________ Life is like a bull grabit by the horn
Guest
Posted: Sat Jun 07, 2008 2:38 pm Post subject:
The "she can refinance" may be an issue -- really more a "consideration" that can affect LTVs, "hits", etc. Do CHECK WITH THE SERVICER OF YOUR CURRENT LOAN and read Fannie Annc 07-23 for kicks:
In addition, the following clarification is being made for both limited cash-out refinance transactions in Part VII, Section 103.02 Limited Cash-Out Refinance Transactions and cash-out refinance transactions in Section 103.03 Cash-Out Refinance Transactions:
• For a refinance transaction (either limited cash-out or cash-out) to be eligible for sale to Fannie Mae, there must be a continuity of obligation if there is currently an outstanding lien that will be satisfied through the refinance transaction, i.e. there must be at least one borrower obligated on the new loan who was also a borrower obligated on the existing loan that is being refinanced. If there is no continuity of obligation, i.e. if no borrower on the outstanding loan that will be satisfied through the new loan is also a borrower on the new loan; the transaction must be treated as a purchase. If there is not currently an outstanding lien on the subject property, a loan to the property owner secured by the property will be considered a cash-out refinance in accordance with Section 103.03.
Some good sound advice! Why go through all of the trouble of adding you aunt until you know for sure that she can be approved. If you plan on refinancing it in only her name you could also consider just selling her the property for whats owed on it and the title work will all get taken care of at closing. _________________ Scott McKay
FreeOnlineCreditGuide.com
Will they do a credit check on the aunt before they let the quit claim go through? Will she be responsible for the mortgage then? Will the payment book go into here name.
Guest
Posted: Sun Jun 08, 2008 5:03 am Post subject:
Step back and think about the transaction you're considering. You want to transfer ownership to a third party who currently has no ownership interest or obligation on the debt. If it walks like a duck, quacks like a duck and looks like a duck it is a PURCHASE. Why not just sell to you aunt? Obvious answer is that your aunt wants to "beat the system" – i.e. avoid putting money down or the alternative a hits on LTV, etc. While those of us in the lending industry aren't crazy about the cumbersome Fannie language of a party having continuing obligation – especially when a non-obligated spouse is involved – the language is there to avoid selfish situations like the one you propose and maintain the integrity of MBS speeds and hence beneficial pricing for the bulk of the homeowners out there.
More than likely (around 99%) there is a due-on-sales clause in your current mortgage which likely will be triggered by any quit claim deed. Then you would really be in the soup – your next month mortgage "coupon" would be for a HUGE amount – entire principal balance. If, by chance, your current mortgage is FHA, VA or a conventional without a due-on-sales clause (VERY rare), she could assume your mortgage with very little cash expenditure. She would have to qualify (income verification, credit report, etc.) but you'd be off the hook. Otherwise, you’ll have to live in the real world.
You can also join this community as a lender or a mortgage professional and help people out with your invaluable suggestions. Please have a look at "Community Professionals" section at http://www.mortgagefit.com/community/professionals.html
I agree guest you should add yourself to the forum as Larry suggested. We would love to learn more about you. _________________ Cliff Pape
Market Analyst
www.home-buddies.com
If you add her she will have to refinance with you. Or it is basically a purchase.
Is she going to take over the payments and move in?
B _________________ Licensed Broker 50 states http://www.aimwithfocus.com
Need quick advise email or PM Glad to help
mjf342
