I am moving into a family member’s house with intentions of purchasing the property. At first we were going to do a land contract, now my family member has came up with the idea of doing a quit claim deed to transfer ownership to me giving me the chance to finance the house in my name and them pay off her mortgage, just the same as if I purchased it out right, but giving me a better chance of getting financed because it will look like I already own the property. Is this a good idea and would this actually work?
2007-02-05 05:06:05 · 7 answers · asked by dirtyhotshot 1 in Business & Finance ➔ Renting & Real Estate
Why a quit claim deed? Quit Claim usually indicates an intend to deed out a flawed interest in a property. If she is sure you are going to pay, just do a general warranty deed; she'll have no more or less interest in the property using a quit claim. In either case, the consideration on the deed will be a problem unless you do a deed of gift. Any mortgage compay worth it's salt will wonder what is going on there.
Sounds like you just need to do a standard purchace, Mortgage and deed. Or check with her mortgage company and see if you can assume the mortgage and do a deed of assumption
2007-02-05 05:10:43 · answer #1 · answered by wizjp 7 · 1⤊ 0⤋
1. You still will have to meet certain criteria to get a loan even if you're on the title. The requirements are not much lower than a first time buyer, it will all depend on the amount of equity in the house.
2. You will have to be on title for a minimum of 6 months, some banks require a full year.
3. While on title you need to be one making the payment on the current mortgage. They will need 6 months to a year of canceled checks proving that you were the one making payments.
2007-02-05 06:24:02 · answer #2 · answered by HBSL621 3 · 0⤊ 0⤋
To properly do what your family member wants to do you should create an offer to purchase subject to financing and you will accomplish what you are trying to do. The closing company will take care of the instruments if you get the financing.
And no a quit claim is the worst kind of conveyance instrument.
Buena Suerte
2007-02-05 05:10:51 · answer #3 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋
A quit deed gives you any ownership she has. You should do an examination of the title because any debts tied to the title will follow it. Like leins for work performed that wasn't paid etc. She will be crazy to quit claim it to you. You don't have to pay her if she does.
2007-02-05 05:18:53 · answer #4 · answered by sm4125 3 · 1⤊ 0⤋
If she gives you a quit claim deed, you will indeed own the home at that time. She is taking a big risk on you.
2007-02-05 05:09:21 · answer #5 · answered by Vivian D 4 · 0⤊ 0⤋
hi Holly, regardless of in case you have been to sign a stop declare, you're nonetheless on the indoors maximum loan. it is going to happen on your credit record, and it could impact your potential to purchase a sparkling homestead. Reasoning is in case your income isn't sufficient to assist 2 residences, you may then be watching extra of a innovative financing application that would have a extra robust cost related. in case you stop declare, you nonetheless have the criminal duty yet no interest in the valuables. i might seek for the advice of an lawyer in case you like any of the fairness which would be in the valuables, you have 50% the superb option to it. in case you do no longer care with reference to the fairness, then in basic terms sign the somewhat declare deed, and enable him refinance and attempt to qualify without you on the indoors maximum loan. stable success, ~Trey
2016-10-01 11:25:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You may be in for a problem if there any lawsuits leins etc. attached to the property.
Do a title search to make sure you are not taking on someone elses
problems.
2007-02-05 05:22:21 · answer #7 · answered by charlotte q 2 · 1⤊ 0⤋