Nobody, but nobody should create a situation where you have ANY equitable interest in the property. Never ever, ever!
If you are not qualified to buy the house, don't make an offer.
If you are seeking shelter, pay the rent. Just like every other renter, when time is up, there will be no equity to split and you most certainly won't have the property signed over to you. Somehow you didn't account for who really owns the house, the lender/investor. They usually have something to say about signing over their collateral.
Clearly there is a lot missing from the description of the arrangement. You may find it beneficial to consult with an Atlanta professional to discuss what is possible and what is probable.
If you can afford to pay the mortgage on an over financed house, why don't you just buy? Tell us the rest of the story.
â€œMore specifically, I will guarantee to pay the mortgage for a set amount of time.â€
How long? The house is upside-down. How long before that changes? Months? Years?
â€œIn return I live in the house till it sells.â€
That sounds like rent to me. If you are paying the current mortgage I think you could find a comparable house to rent for less. Do you expect to stop paying at some point and continue to live there?
â€œIf it sells we split any equity.â€
Currently, the house has no equity. It could only sell as a short sale.
â€œIf it doesn't sell before the agreed upon timeframe ends then the house gets signed over to me.â€
Does the â€œagreed upon time frameâ€ have any bearing on reality? If the owner signs the house over to you, the owner will remain liable for the mortgage. You would not â€œownâ€ the house unless you pay off the mortgage.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing
If your credit is halfway decent and the loan on the house is assumable, this may be a better option. Most all FHA, VA and some Conventional loans are assumable. You have to qualify for this ability (ask the lender of the note). There's no Realtor, no loan officer, just you, the seller and the attorney. At least this way, you have the title and the loan regardless of your business contract. Money can build relationships but more easily, it can destroy them.
The market has changed considerably and houses do not sit for any length of time. Everytime I put a house on the market (especially shortsales or pre-foreclosures) I get multiple contracts within days of putting the property on the market.
This is not a good idea. It's not likely there will be any equity to split anytime soon, if you just want to help a friend out that's a little different. You also mentioned that if the house doesn't sell in a certain time frame the house get's signed over to you......although we don't have all the facts it just doesn't sound right. I think you should try to get qualified and find a house that you want to purchase. As they say if it sounds too good to be true it probably is.