A friend would like to quick deed her home to use to get out of her home. How would you close the deal?

Question

She would like to quick deed her home to us as we will take over her morgage payments for two year. At that time we will have to get financing ourselves, and any equity will be split 50 50.

Answer 1

First of all you should get a warranty deed, not a quit claim. With the latter, the seller is making no reps or warranties regarding their ownership of the property. A quit claim simply says: I give you whatever ownership rights I have -- which could be none.

And make sure you contact the lender in advance to see what requirements they may have for the assumption.

Answer 2

In this transaction you do not want to use quit claim deed.

Look in your local telephone book and locate a title company. Call them, explain to them that your friend would like to transfer her property to you "Subject to the existing mortgage/loan."

The closing agent will understand this term and do the legal thing to make it happen.

They might require some type of contract between the two of you. You have the basics about what you want to do any way, so you might have to establish a down payment, sale amount, closing date (approximate) They will give you a general idea as to what is needed.

This information is needed so that the closing agent can make up what is called an "Escrow Closing document".

Your friend might even want to add a lien against the property to protect her 50% equity in the property. I know that I would. Once the transaction close, your friend will get a silent second for the 50% that will be all due and payable at the refinance which should take place one year from the sale date but not more than 2 years from the sale date. This document protect your friend and the closing agent will complete it for your signature/

Upon the closing of the transaction the title company will record this document against the property.



You, as the buyer will, upon the closing, of this transaction be responsible for the payment of the insurance and county taxes that need to be paid. If they taxes and insurance are paid through the mortgage you need not change this nor do you have to make a separate payment for these items since you would be making them through the monthly mortgage payment.

The reason you want to do this transaction through a title company is that it will prevent potential legal problems in the future.  

You should make the monthly mortgage payments each month by check , not money orders or cashier checks, but by personal checks from your bank account. This is proof that you made the monthly mortgage payments.

After a year or more with the cancelled checks or bank statements from your bank you will be able to refinance as if the mortgage was yours since you will be able to prove that you in fact did make the mortgage payments.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

She would be a fool to quit claim to you. It gives up all her legal ownership rights and yet leaves her on the mortgage.

You all should do a rent-to-own sort of deal. Have a lawyer draw up a document that protects both your rights and spells out the terms in detail.