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jcholguin11 · Joined: 29 Dec 2009 Posts: 1 1.63 Dollars($)

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

gmakerley · Posted: Tue Dec 29, 2009 10:34 pm Post subject:

you need to clarify before an answer can be given. are you being asked to co-sign a new mortgage for your "friend"?

Guest

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.

gmakerley · Posted: Tue Dec 29, 2009 11:26 pm Post subject:

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.

smithsussane · Posted: Tue Dec 29, 2009 11:35 pm Post subject:

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

gmakerley · Posted: Wed Dec 30, 2009 11:10 am Post subject:

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.

Guest

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

jameshogg · Posted: Thu Dec 31, 2009 10:55 pm Post subject:

Hi jholguin,

I did not understand what you wanted to say by

Guest

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?

cupplesjonathan71 · Joined: 04 Nov 2009 Posts: 82 0.00 Dollars($)

there is a procedure for short sale. your friend can contact his/ her mortgage provider to understand it in a better way.

gmakerley · Posted: Fri Jan 01, 2010 2:21 pm Post subject:

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.

Guest

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.

gmakerley · Posted: Fri Jan 01, 2010 3:40 pm Post subject:

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.

Guest

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.

gmakerley · Posted: Fri Jan 01, 2010 9:32 pm Post subject:

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.

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quit claim deed good idea for friend