If we quick claim the property are we know responsible for h

lsyphax · Joined: 27 Jan 2008 Posts: 1 1.32 Dollars($)

Question 2. Do we have to qualify with his lender?

My huband and I found a home that the owner is in financial trouble (three months behind) He wants to quit claim the home to us. What is the position of the lender/ Can he still foreclose on the property or do we have to refy?

livinginnky · Posted: Sun Jan 27, 2008 10:40 am Post subject:

Yes and yes.

They can foreclose and you need to purchase the home not refinance. I say that because there is a difference.

You do not have to qualify through his lender, however, you can use any lender you want.

Let me know if you have any more questions.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi lsyphax,

Welcome to the forum.

The owner cannot quitclaim without informing the lender. Even if the owner quitclaims the property to you the lender may foreclose. So if you like the house, you can purchase it. You can take mortgage from any lender who can offer you better rates and terms.

"do we have to refy?"
You are not refinancing as Eric has mentioned because the mortgage is not in your name. Rather you are take a mortgage on your name and the previous owner will be relieved from his mortgage obligation.

Hope that will help.

Feel free to ask if you have any further questions.

Best of luck.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.03 Dollars($)

If he does quit claim the home to you then you need to refinance it to take the cash out to pay the mortgage. The quit claim will need to be filed before you can apply for a refinance. So the owner must have a lot of trust to allow you to do it this way. Otherwise you will need to purchase the home.

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