Divorcing And Late In Payments

[Gary (MO) 0]

Coolstuff~

 

Basically you would agree to buy this guy's property for what he owes. He thus would "sign the deed" over to you...you would notarize his signature conveying his interest in the property to you - on a new deed. Warranty deed or Deed of Trust would depend upon what state you are in. The first mortgage would of course still be in his name and would also be a lien against the property but that's no problem for you because you are going to put a tenant/buyer in the property. You might have to come out of pocket to make up his back payments or perhaps as Tony suggested you might negotiate to move those payments to the end of the loan.

 

Some considerations:

 

1. You have to make sure that he can give you a clean title; this divorce thing has to be straightened out as Kimberly and others have pointed out. You can deal before the end of the divorce but keep your eyes open.

 

2. You need to CYA: have him sign a document stating that he is aware that his loan has a 'due on sale' clause and that you are not assuming his loan. Same thing with your buyer if you do a wrap. Probably not such a big deal if your exit strategy is a Lease Option.

 

Gary

[coolstuff41005 0]

Here is an update. I have talking with the seller, so I have some kind of rapport with him now. He confirmed it that we will be meeting this coming Saturday. I will be purchasing his house subject to and I'm going to use a Sales Contract, Warranty Deed, and Power Of Attorney. Those are the main forms that I will need for the people who wants to know. I haven't talked numbers with him yet. I hope this will be a deal.

[-Tony- 0]

coolstuff41005,

I would put the property into a trust and work it that way.....

[coolstuff41005 0]

Tony,

I have no clue on how to put a property into a trust at all. Can you give a little bit more detail about it?