Quit Claim

What is the name of your state?What is the name of your state?Virginia
Hello,
My mother purchased a second home about three years ago, with plans of moving closer to her grandchildren(she lives in Georgia)(The house and I are in Virginia). Since then she has retired and decided not to move. For the past year I have been paying the mortgage and living in this house, with no tax benefits!
Is it possible for my mother to give me an Quit claim on this house ? I make good money but I can not qualify for a mortgage due to past credit problems. I also have power of attorney for my mother. What can my mother and I do to get this burden off of her, and still keep the house?

Respectfully,
Reggiesr

[HomeGuru]

[quote=reggiesr]What is the name of your state?What is the name of your state?Virginia
Hello,
My mother purchased a second home about three years ago, with plans of moving closer to her grandchildren(she lives in Georgia)(The house and I are in Virginia). Since then she has retired and decided not to move. For the past year I have been paying the mortgage and living in this house, with no tax benefits!
Is it possible for my mother to give me an Quit claim on this house ?

**A: yes it is. There may be a due on sale clause though.
*********
I make good money but I can not qualify for a mortgage due to past credit problems.

**A: then if Mom wants to sell the property to you, have her sell it on an installment contract. You pay a downpayment and she finances. Or have her sell the property to you at a below market price so that the mortgage loan would be smaller and you could qualify.
********
I also have power of attorney for my mother. What can my mother and I do to get this burden off of her, and still keep the house?

**A: what burden?

[b][i]Virginia
Thank you for your answers, Homeguru.
Please explain a Due on sale clause.
Also, How does my Mother do an installment contract and is this possible to do with her still owning a mortgage on this house?
Thanks

Ps.
The burden is my mother`s house to her, not me having Power of Attourney .

Respectfully,
Reggiesr

[HomeGuru]

Originally Posted by reggiesr

[b][i]Virginia
Thank you for your answers, Homeguru.
Please explain a Due on sale clause.
Also, How does my Mother do an installment contract and is this possible to do with her still owning a mortgage on this house?
Thanks

Ps.
The burden is my mother`s house to her, not me having Power of Attourney .

Respectfully,
Reggiesr

**A: search " mortgage due on sale clause"

[Ciarraine]

Originally Posted by HomeGuru

**A: search "mortgage due on sale clause"

**A: HomeGuru is too lazy to tell you that "due on sale" means that if the Owner of Record (your mom) sells the property or transfers the title (such as Quitclaims to you), the full amount of the loan is due. Don't mind him. He's frequently right about things, but even more frequently rude.

This is to prevent the lender from having a loan but no collateral to foreclose upon in the event of default.

So a quitclaim in your situation is not a good idea.

You should check with a subprime broker about qualifying for a mortgage. A lot of people who have bad credit can still get financing, especially if your mother makes a gift of equity to you that lowers your loan to value. Don't count yourself out without looking around.

The other option is a land contract like what HomeGuru suggested. But try getting a loan from a good mortgage broker that handles the big subprime banks like New Century, Option One and Long Beach.