Home arrow Mortgage Forums arrow Deeds, Property Transfer and Estate Planning arrow

quit claim deed good idea for friend

Author Message
Icon Mini Profile jcholguin11





Joined: 29 Dec 2009

Posts: 1

1.63 Dollars($)
Post Posted: Tue Dec 29, 2009 12:37 pm    Post subject: quit claim deed good idea for friend
Like 0
Dislike 0

friend that is no longer with husband is being asked to prove income for mortgage co. but she never worked in life or has job and now has diabetes. her kids have paid mortgage for 2 months but company said that kids cannot be quickclaim her interests in house. As friend, she asked to do this with me. She will live in house, kids will continue to pay mortgage. What are the possible problems I face because property will be in my name? I own my house and have liability insurance if sued, can this happen to me with her property, being sued. What if kids stopped payments or she dies, then what are possible problems. thanks for any help
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
Post Posted: Tue Dec 29, 2009 10:34 pm    Post subject:
Like 0
Dislike 0

you need to clarify before an answer can be given. are you being asked to co-sign a new mortgage for your "friend"?
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
jholguin

Guest







Post Posted: Tue Dec 29, 2009 11:00 pm    Post subject: answer for Mr. Akerley
Like 0
Dislike 0

No, not for the mortgage, she says that the her family will continue to pay the mortgage under her current one. she only wants me to prove that I have an income which would satisfy the mortgage company, so if I am on the property, she said that satisfies the requirements.
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
Post Posted: Tue Dec 29, 2009 11:26 pm    Post subject:
Like 0
Dislike 0

that doesn't make sense. if the mortgage company wants to know your income, it would request that for purposes of qualifying for a loan. she isn't going to qualify for a loan based on your income. something isn't right in this picture.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
Icon Mini Profile smithsussane
smith.sussane




Joined: 18 Sep 2008

Posts: 10020
Location: Alaska
917.78 Dollars($)
Post Posted: Tue Dec 29, 2009 11:35 pm    Post subject:
Like 0
Dislike 0

Hi jcholguin!

Welcome to forums!

Though the property is quitclaimed to you, you will not be liable for the mortgage as it would not be in your name. So, if the kids stop paying the dues or if your friend dies, you will not be responsible for the mortgage dues. The lender will not be able to come after you for the debts.

However, having said that, you should note that when the property is transferred to you, the lender may want you to refinance the loan in your name.

Feel free to ask if you've further queries.

Sussane
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
Post Posted: Wed Dec 30, 2009 11:10 am    Post subject:
Like 0
Dislike 0

the lender will require you to refinance - forget this nonsense about "the kids paying" and "may want you" - it's an imperative. a quit claim giving you ownership triggers the due on sale clause, and the existing mortgage will be due and payable in full as soon as ownership changes.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
jholguin

Guest







Post Posted: Thu Dec 31, 2009 8:34 pm    Post subject: further information found out
Like 0
Dislike 0

Mr. Akerley, now I find out that my friend wants a short sale of her property but wants to continue to live with her daughter living in the other unit, there are 2 unit apparently. Correct me if I am wrong but in a short sale I would be required to prove that I have whatever is the amount that this mortgage company has decided on? What are other problems with short sale? thanks
Icon Mini Profile jameshogg
jameshogg




Joined: 20 Dec 2005

Posts: 10148
Location: Nevada
941.94 Dollars($)
Post Posted: Thu Dec 31, 2009 10:55 pm    Post subject:
Like 0
Dislike 0

Hi jholguin,

I did not understand what you wanted to say by
Quote:
in a short sale I would be required to prove that I have whatever is the amount that this mortgage company has decided on?

You should note that the lender will accept a short sale depending upon your friend's financial situation. If the lender finds that your friend will be able to pay off the dues, he will never agree to a short sale.

Thanks
jholguin

Guest







Post Posted: Thu Dec 31, 2009 11:36 pm    Post subject: to clarify
Like 0
Dislike 0

dear jameshogg, I meant to say that the if lender has determined a certain amount for the property, that I also have to prove that I have the money to pay this? I would assume that this is true?
Icon Mini Profile cupplesjonathan71





Joined: 04 Nov 2009

Posts: 82

0.00 Dollars($)
Post Posted: Fri Jan 01, 2010 3:58 am    Post subject:
Like 0
Dislike 0

there is a procedure for short sale. your friend can contact his/ her mortgage provider to understand it in a better way.
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
Post Posted: Fri Jan 01, 2010 2:21 pm    Post subject:
Like 0
Dislike 0

with the short sale, the lender is making a decision to accept less than what is owed on the property. because such a transaction is dependent upon a buyer coming along to offer a reasonable bid that can be acceptable to all, it's not so much a matter of the lender calling all the shots.

yes, the lender is going to determine what is a reasonable property value and a reasonable amount to accept on a short sale. by that, i mean (by example) - if the "reasonable" sales price is $150K and a person comes along with a bid of $135K, it is likely that the lender is going to reject the contract. as the lienholder, they have the right to have a "say-so" in the final acceptance of a bid.

has that helped? i hope so.

_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
jholguin

Guest







Post Posted: Fri Jan 01, 2010 3:19 pm    Post subject: short sale
Like 0
Dislike 0

yes, that was of help. I meet with my friend tomorrow to begin discussions and to decide if I am willing to continue, her story has changed much but I understand more of the procedure, which is similiar to myself actually buying the property and not what was first mentioned to me about just having my name of a document with her and her family in control of the whole property. your information has given me insight and I thank everyone for their input. It is a big decision but one in which I can make an intelligent choice.
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
Post Posted: Fri Jan 01, 2010 3:40 pm    Post subject:
Like 0
Dislike 0

i'm happy to help when and where i'm able, and i hope that your decision will be favorable to you and, as you noted, an intelligent choice. you're doing much right in seeking assistance to make this decision.
_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
jholguin

Guest







Post Posted: Fri Jan 01, 2010 7:28 pm    Post subject: quick question about short sales
Like 0
Dislike 0

Are family members allowed to buy the property via short sale from their mother? This was reason that I was asked to help my friend in first place as they indicted that they could not because children are not allowed to? thank you for any help.
Icon Mini Profile gmakerley
gmakerley
Community Mentor
Community Mentor

best lender badge

Joined: 09 Nov 2007

Posts: 12330
Location: bloomfield, ct
50.03 Dollars($)
Post Posted: Fri Jan 01, 2010 9:32 pm    Post subject:
Like 0
Dislike 0

there are so many red flags that come up with family-involved transactions that it's not worth the trouble even if it is a legitimate deal. with a short sale, the lender is looking at a sure loss regardless, so they're not interested in anything other than an absolutely worthy buyer who's been preapproved by a solid lender, and who has solid credentials - no family involvement (from seller), etc.

it may not be an illegal sale - from family member to family member - but it's fraught with danger and it all too often smacks of illicit dealings. no, it makes no sense to even try to do it.

_________________
George M. Akerley
Independent Contractor - Mortgage Consultant
Word of Excellence Editing/Writing/Proofreading
860-221-5044
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
1, 2  Next  
Page 1 of 2

 
Refinance Quotes
Call for Rates
888-485-7561
Speak to a lender now.

We will match calls to our toll free number with our network of lenders.

Ask Questions
Community Attorney
Joshua Heard - Attorney Joshua Heard
Houston, Texas






Highlights
Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

New and upcoming tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool






Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.142 seconds.