Foreclosure in Kittery>Question Details

Mumma0511, Renter in Kittery, ME

Can my husband get his Dad's house and morgage payments put in his name to prevent foreclosure??

Asked by Mumma0511, Kittery, ME Mon Dec 12, 2011

My Father in law is at risk of going into Foreclosure. My husband (his son), and him have already discussed the situation at hand and have decided they want to put the house and payments his my husbands name. However, we are not sure what route should be taken to accomplish this. We do not have the greatest credit, and at the moment there is only one source of income, however, the tenants rent would help to pay the morgage. Any help would be greatly appreciated. Thank you so much for your time :)

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The answer is no. Your father in law can sell the house to your husband but he would still have to pay off the existing mortgage and get a new mortgage in his name. The only other way is to see if the existing mortgage has an assumable mortgage clause (I have a house in Kittery and have this) that would allow your husband to take over AND PAY the mortgage. Otherwise best to negotiate a short sale or an allowable sale between related parties with bank prior to foreclosure. If your credit is not good there is very little recourse to save the house, other than all moving in together to share expenses and get a modification with combined income. Best of luck lots of good folks in the same situation as you. Bonnie Dridi @ Prudential Verani - Portsmouth
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0 votes Thank Flag Link Wed Jan 18, 2012
Unfortunately, Banks forbid homeowners from purchasing their own home or any relative's home in short sale status, or preforeclosure, because it is not an "arms length transaction". However, a short sale may still be the thing for him as it will stop foreclosure and eliminate the mortgage.

You can learn more about short sales and how they work at: good luck!
0 votes Thank Flag Link Tue Dec 13, 2011
It sounds as if you are putting yourself at risk by doing this. Are you sure you want to do that? In our area, almost no mortgages are written any longer that can be automatically assumed. Regardless, you may be able, with your father-in-law's written permission, to deal with his bank. They may think you and your less-than-stellar credit are still a better risk than the current situation.

Alternately, you can just buy it (at any price the tow parties agree to as long as it covers the mortgage and closing costs) and pay the current creditor off by finding your own bank. You can make arrangements for his father to live there, with or without rent, or whatever. Just make sure the new bank understands your agreement with him.
0 votes Thank Flag Link Mon Dec 12, 2011
Depending on the loan you may be able to have the loan assumed. You need to read the Note and see what the terms of the loan are. There are several types of loans that are assumable but your best answer will be in the language of the Note. I would recommend (if your Husband has the ability) to assist his Father in making the loan current. Most Loans that are assumable would require the loan to be current. It sounds like this property is a non-owner occupied property? Those loans are tricky because there's only a small group of banks that will even entertain modifying that type of loan.
0 votes Thank Flag Link Mon Dec 12, 2011
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