Can I buy my friend's home?

Question

My friend's father died earlier this year. We know his father has a remainder balance on his mortgage. I would like to purchase the house because my friend doesn't want the burden of the house and he'd rather give it to me than a stranger. But, because there's still mortgage owed on the house the banks will foreclose on the property. How can I purchase the house from my friend, before the property is attacked by investors at a public foreclosure auction. We're in Missouri.

Please keep in mind, this is his name isn't on the house, this is his parent's home and they are now dead.

Answer 1

Find out if the mortgage is assumable and possibly buy it that way - especially if the mortgage rate is significantly lower than current rates.
If this doesn't work out and your friend needs help, tell them to check into what is called a short sale. It's where the bank approves a sale of the property equal to the amount remaining on the mortgage so that the mortgage is satisfied. It keeps the property from being foreclosed on and keeps your friend's credit intact. Look for a Real Estate attorney to help you with this.

Answer 2

Condolences on your friend's loss.
There are a number of quesions you need to answer.
If your friend was interested in keeping the house or passing it to a friend, that needed to be addressed for the person passed away. Good lesson for you on estate planning.
Is your friend the executor of the estate? Did the father have a will? Are there any other living relatives, wife, bothers, sisters, children? They may want the property sold and any equity divided up. If he did not have a will the probate court may order the property sold.
Call the county property office. How much is owed on the house? Are the taxes up to date?
Do you qualify for the mortgage amount needed? No matter what else happens, you would have to apply for and be approved for a mortgage. I doubt the lender would let another person assume the mortgage.
Good luck.

Answer 3

sorry about your friends loss...if his dad had an assumable mortgage, you can take over the mortgage payments with the proper notifications to the bank without having to qualify. If the mortgage is not assumable, your friend could sell you the house for the balance left on the mortgage (plus any back payments and bank fees) but you would have to qualify and obtain your own mortgage. If the house will be owner occupied, and your credit is decent, you can get a 2% mortgage loan keeping your payments low for a year or so until you are able to make the fully amortized payments. Act quickly!

Answer 4

One of the things that would be a great option would be to look at assuming the mortgage. What this means is you take out a loan financing the remainder of the mortgage balance. I am assuming your friend was his beneficiary that recieved this liability from his father but this would be the easiest way. The only other things you could look at would be to purchase it as a foreclosure or at a public option but those methods are not as clean and easy on behalf of the buyer. I would speak to a lender and realestate professional to see how you can take advantage of a loan assumption.

Good luck

Answer 5

you guys need both a mortgage broker and a lawyer. He could always have you move in as a renter to at least get out of forclosure trouble then go about making purchase arrangments. You still have to meet full financial qualifications. He might also be able to sign the house over to you. Again you need a lawyer for this.

Answer 6

I dont understand the question. Just buy the house!!!!!!!! Go to your bank, appy for a mortgage for what you will be paying and BUY IT. You will go through a title company to insure that you know the exact amount owed to the bank, but there is no scary, unknown things for you to look out for. good luck