Posted on: 20th Oct, 2006 10:38 am
A friend of mine wants me to get a loan to purchase his moms home (she deceased and he is the executor of the estate) because he has gotten some financial troubles that will soon go away, (property that tenants have forfeited on rent, but is on the market for sale and there are a few late payments on his credit report due to the tenants not paying and him not being able to support payments for 3 homes) and has caused his credit score to do down thus deeming him a risk, but in my opinion he is in no way irresponsible, just has bad tenants and he does not want to lose his mom's house because of the equity that's in it.
What he wants me to do is purchase the home so that he can get the equity out of it, meanwhile He will make the payments on this home to me as a renter, and later after he can get a better rate on refinancing he wants me to quit claim the property back to him. I don't want anything out of this deal and I am not interested in a profit, just helping out a friend, but I don't want to get stung on this deal in the end. Help!
What he wants me to do is purchase the home so that he can get the equity out of it, meanwhile He will make the payments on this home to me as a renter, and later after he can get a better rate on refinancing he wants me to quit claim the property back to him. I don't want anything out of this deal and I am not interested in a profit, just helping out a friend, but I don't want to get stung on this deal in the end. Help!
Hi,
If there are no other beneficiaries of the estate who may object to the sale of the home then it can be purchased by you as your friend is suggesting.
If there are no other beneficiaries of the estate who may object to the sale of the home then it can be purchased by you as your friend is suggesting.
You should also ask the lender whether he will agree/allow having your friend as the renter and make the payments.
Hi,
It seems to be alright from the information provided by you to go ahead with the procedure your friend has thought about to save the house. You can follow the steps and help out your friend.
It seems to be alright from the information provided by you to go ahead with the procedure your friend has thought about to save the house. You can follow the steps and help out your friend.
hi guest,
what your friend has suggested is like this: you take a loan against the home owned by your friend's mom and purchase it. then you offer the house on rent to your friend. he will be making payments on a monthly basis with which you can pay towards the debt against the home. after some months, you can refinance the loan in your friend's name thereby transferring the ownership interest through quit claim at the time of closing.
well, i don't find you losing anything in this deal but a lot depends on your friend. i mean that he should be trustworthy enough for you to go for such a deal and help your friend to such an extent.
thanks,
caron.
what your friend has suggested is like this: you take a loan against the home owned by your friend's mom and purchase it. then you offer the house on rent to your friend. he will be making payments on a monthly basis with which you can pay towards the debt against the home. after some months, you can refinance the loan in your friend's name thereby transferring the ownership interest through quit claim at the time of closing.
well, i don't find you losing anything in this deal but a lot depends on your friend. i mean that he should be trustworthy enough for you to go for such a deal and help your friend to such an extent.
thanks,
caron.
What if your friend stops making payments after a few months or rather is not able to continue making the payments because of some unforeseen financial problem? The loan will start to go into default and your credit score will be affected. Before taking a decision think about such a future situation also.
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