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Old 05-21-2010, 10:53 PM
 
Location: Phoenix
2,898 posts, read 6,479,801 times
Reputation: 878

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My mother is facing foreclosure, she owns a 3bd house but lives by herself and really doesn't want to own a home anymore since I moved out a few years ago.

My credit is poor, so I was wondering if there is a way of taking over someones mortgage?

The only way I could think of doing this is just paying her the payment, and having her pay it for me, but then I wouldn't technically own the home, which is what I am trying to do.

Can you add a name to a mortgage, so we would both be listed on it?

Sorry for the multiple quesitons, I am not familiar with real estate.
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Old 05-21-2010, 11:42 PM
 
Location: Austin Texas
434 posts, read 747,135 times
Reputation: 152
Her best bet could be a Short Sale. There are some criteria you mom would have to meet but it's worth a look. As far as you "Taking over" the mortgage, you'd have to talk to a lender and see if you qualify for a mortgage. Guidelines are harder now, but if you qualify you'd have to buy the house...best to talk to a lender...better yet, her lender to see where things are.
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Old 05-22-2010, 12:12 AM
 
Location: Northwest Indiana
691 posts, read 1,290,785 times
Reputation: 676
If the bank has already agreed to allow a short sale, you probably wouldn't be able to buy it that way. Most short sales prohibit selling to relatives, close friends etc of the homeowner to prevent fraud. Your best bet would have to be to assume the mortgage. If the bank would allow it. Call the bank as soon as possible and see if your bad credit is too bad for them. If you can't get a mortgage its not likely you can stop the foreclosure unless you have enough cash to buy it outright.

If there is no way to buy her house, make sure she does the short sale. It will damage her credit far less then a foreclosure will.
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Old 05-22-2010, 03:45 AM
 
Location: Pinal County, Arizona
25,100 posts, read 24,509,306 times
Reputation: 4812
Quote:
Originally Posted by KarmaPhx View Post
My mother is facing foreclosure, she owns a 3bd house but lives by herself and really doesn't want to own a home anymore since I moved out a few years ago.

My credit is poor, so I was wondering if there is a way of taking over someones mortgage?

The only way I could think of doing this is just paying her the payment, and having her pay it for me, but then I wouldn't technically own the home, which is what I am trying to do.

Can you add a name to a mortgage, so we would both be listed on it?

Sorry for the multiple quesitons, I am not familiar with real estate.
There was a time when one could assume a mortgage without qualifying. But, that era is long gone.

If one wants to assume a mortgage, you are going to have to qualify to assume that loan and that process is essentially the same as getting a brand new loan. And, depending upon the age of the loan being assumed, it may not be financially advantageous for you to assume an existing loan as interest rates are at lows pretty much never seen before.
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Old 05-22-2010, 06:37 AM
 
25 posts, read 42,590 times
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A good friend of mine moved in with her father when he was ill, she paid the mortgage payments herself and her father added her to the title of the home and drew up papers so that she alone would get the house when he died. Maybe you could look into that if you know that you wont be able to get a mortgage in your name. The mortgage would still be in your moms name but you would be on the title. You can draw something up that says when the mortgage is paid she would be taken off the title
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Old 05-22-2010, 06:55 AM
 
Location: NJ
17,580 posts, read 21,138,047 times
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One thing you have to ask yourself is if the house is worth the mortgage. Does it even make sense for you to take over the payments?
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Old 05-22-2010, 08:58 AM
Status: "No, I am your favorite agent." (set 5 days ago)
 
Location: South Metro Denver for 25 years
8,668 posts, read 19,313,007 times
Reputation: 4399
Of course there is a way to accomplish what you want.

I believe if your Mom quit claims her interest in the property to you and you make all the payments the servicer cannot call the note because of the due on sale clause.
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Old 05-22-2010, 05:30 PM
 
Location: Phoenix
2,898 posts, read 6,479,801 times
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I met with a realator today, and with the way the market is right now it's not really worth it to take over the mortgage, the house was purchased for $98k in 2001, at the peak of the market it was worth $244k, but now the house isn't worth more than $120k, and with my poor credit I doubt I would get a reasonable mortgage rate.
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Old 05-22-2010, 05:39 PM
Status: "No, I am your favorite agent." (set 5 days ago)
 
Location: South Metro Denver for 25 years
8,668 posts, read 19,313,007 times
Reputation: 4399
You don't have to get a new mortgage. Take over the payments on the current loan.
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Old 05-22-2010, 07:24 PM
 
Location: Austin
4,451 posts, read 8,405,069 times
Reputation: 3593
Quote:
Originally Posted by KarmaPhx View Post
I met with a realator today, and with the way the market is right now it's not really worth it to take over the mortgage, the house was purchased for $98k in 2001, at the peak of the market it was worth $244k, but now the house isn't worth more than $120k, and with my poor credit I doubt I would get a reasonable mortgage rate.
Did you do the math? Bought for $98k, worth about $120k. That's approximated $22k of equity (not including closing costs) you would throw away to let the house foreclose? That makes no sense whatsoever.

If it were reversed and your mom paid $120k, and it's now worth $98k, that's different math. If the first is true, you should just start making the payments, put your name on the title, and take the equity when you sell in a few years.
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