Move-in Madness!

[tampabaydave]

What is the name of your state? Florida.
Last month, my best friend purchased a brand new $220,000 house with $40,000 down. He asked us if we wanted to rent it out for $1,300/month. We agreed and a moved in right away. He told us we could move in early just as long as we paid him before the 1st mortgage payment was due.
Two days into the move my best friend past away. No lease was signed or written up. Now, his family is in town and just wants to have the estate processed as quickly as possible, but my friend did not have a will and it is going to probate. His parents said to keep living in the house and the they will sign a quitclaim deed if they can. They just want it taken care of quickly and do not care about making any money off the property.
I really want to buy the house. What advice would you have for a person like me in this situation?
Thanks in advance.

tampabaydave

[nextwife]

You will likely need to finance the mortgage into your name, even when the QC is done and recorded. The lender likely has every right to "accelerate" the loan, and call it due if the house is transferred without their loan to the decedant being paid off. The loan would be of record and you can obtain a copy from the RODs office and review it. Especially read the "Due on Transfer" clause or anything similar.

[moburkes]

If he hasn't even made the first mortgage payment, the bank may be able to back out of the deal.

[nextwife]

Not if the sellers been paid. The buyer's situation, once closed and funded, has nothing to do with the seller. The seller delivered the deed in exchange for the buyers funds. Buyer's funds were partially secured by a PURCHASE MONEY MORTGAGE. Lender can't just rescind, if no fraud is involved, a week or two after funding!

I'm in WI. We table fund here. If the buyer died 24 hours after funding, it's still a done deal for the seller. If the closing agent closed in accordance withe the lender's closing instructions, what happens with buyer's status after close and funding has nothing to do with the validity or obligation of the mortgage.

[moburkes]

Originally Posted by nextwife

Not if the sellers been paid. The buyer's situation, once closed and funded, has nothing to do with the seller. The seller delivered the deed in exchange for the buyers funds. Buyer's funds were partially secured by a PURCHASE MONEY MORTGAGE. Lender can't just rescind, if no fraud is involved, a week or two after funding!

I'm in WI. We table fund here. If the buyer died 24 hours after funding, it's still a done deal for the seller.

Table fund? Interesting**************.....

[nextwife]

Originally Posted by moburkes

Table fund? Interesting**************.....

Yup. Closing and funding all occur same day. Buyer brings a certified check. Lender MUST provide "good funds" according to WI law. Many parts of the midwest are the same. Buyer and seller sit in two rooms at the closing office and each sign their papers. The docs go back and forth between the rooms. IF a funding authorization is needed (not necessary with local lenders, they are prepared to fund right there), the docs are emailed and a funding authorization is recieved. Closing agent cuts and distributes the checks per the closing statement and wires or expresses the payoffs. In essence, checks are "passed" at the closing table. Nobody closes through escrow companies, nor are their transactions "in escrow". They write an offer, get a loan committment, and everyone attends the closing expecting the money to be passed around at the table.

My husband closed on his place in FL and it was the same.

Sometimes a seller will close in the morning, and take their proceeds check and close on their home purchase in the afternoon. And then those proceeds checks and payoffs are also distributed.

In one 8-5 time period, three successive home closings can easilly occur. Thus it can't be undone, once funded, without huge ripple consequences and lots of possible lawsuits.