We have the option to be added to the sellers mortgage, then the seller intends to drop off the mortgage in a year or two, leaving us with the full responsibility of the property.. We do not know the name of this real estate transaction! It is not an assumable mortgage, that is another option for us though.
2007-05-04 10:44:07 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
land installment contract???? sounds like you will pay the seller for the first year and then refi to take them off? they can't just drop off the mortgage
2007-05-04 11:03:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The individuals that are on the mortgage now can not decide to just add individuals to their mortgage.
The buyers can take title to the house "Subject to" the existing mortgage. Normally the seller then take as a second mortgage the difference between the sale price and the amount owed on the mortgage.
In a year or two you will have to refinance the mortgage. One thing you want to do is make sure that you as the buyer pay the mortgage with your personal check. You will need to prove that you have been making the payment for an entire year.
If you do this most lenders will consider the transaction when you are prepared to take over the mortgage yourself a refinance as oppose to a purchase.
Make sure you go through an escrow closing agent, all the notes,payments, interest and amortizations are written and recorded in the proper names.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-05-04 10:58:44 · answer #2 · answered by loanmasterone 7 · 0⤊ 0⤋
I do not understand you question:
"We have the option to be added to the seller's mortgage..."
I assume you are the buyers and that the seller has a current mortgage on the property and that the currently note holder has approved to add you to this mortgage.
"...then the seller intends to drop off the mortgage in a year or two..."
He actually can not "drop off" the mortgage. You will need to refinance with another Lender and take him off title, if haven't done so already.
It's called "subject to" but there is one thing you have to pay attention to, which is, the hazard insurance. If the Lender see's that the homeowner has been changed to somebody else. He might do a title search and find out title was transferred and therefore enforce the "Due on Sale" clause, calling the loan amount due in FULL right there and then.
2007-05-07 14:29:40 · answer #3 · answered by Arturo S 2 · 0⤊ 0⤋
It is called quick claim to the title... then you will have to refinance and qualify for your own loan.....
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2007-05-04 10:52:37 · answer #4 · answered by neo 2 · 0⤊ 0⤋