Hello everybody! My name is Shawn Strain, I am from southern New Mexico!
My parents moved to a new town a few years ago, but didn’t have the credit to purchase the home they wanted. In order to get their house my grandparents bought the house for them, and my parents have been making payments on it. Basically my grandparents have been treating this as a second residence, while my parents make the payments and all taxes.
Now that my dads credit is better he would like to take over the deed to the house.
They went to a lawyer and a mortgage contract was brought up? I am not too familiar with this process. I figured some kind of seller financing deal would make most sense. But would like to get an opinion from you all!
Not sure what kind of loan it is, but conventional loans more than likely will have a due on sale clause for anyone trying to transfer title while there is still a loan on the property. I'd go with seller financing/carry back on this one. Talk to the lender and/or an attorney on the fine print of getting this done as I'm not familiar with how such things are handled in your area or with which bank the loan sits.
Contact a lender about doing a refinance. Since parents are living in the home it may qualify as primary -- they may need to be added to title beforehand, or perhaps at the table.
Mortgage lender/broker would be your best source of info but perhaps this helps. Good luck.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.