I suspect that your situation is not â€œnormalâ€. I suspect that the house is under water. In other words, the loans against the house exceed the current market value of the house. If true, why would you take over a loan, or loans, that exceed the value of the home? You would be better off seeking another home if you qualify to buy one.
You should seek the advice of a local Realtor who can help you sort this situation out and explain in more detail what a short sale is all about. Your in-laws should attend the meeting with you.
This is a question for the lein holder (the bank). Normally there are some fomalities before you can legally take over mortgage payments and ownership of the home. Please do call the bank in question for an accurate answer.
On the other hand, I don't suggest telling the bank you are buying the house. Just get the mortgage current, transfer the deed, and make the payments.
The Kansas foreclosure process takes some time. Your in-laws should receive 3 notices that the bank is going to foreclose. Then they have to wait for a hearing before a judge. Then there are 3 notices of the coming sale. There are things you can do during this process to delay or stop the foreclosure. But it sounds like they aren't even at that point yet. You should have time to get this done.
If you do a Google search "subject to real estate" you will get info about the kind of transaction you're talking about.
Please proceed with caution. From what you described, my guess is that your in-laws took out a second mortgage on the house, and the property is now mortgaged for more than it is worth. If that is true, the banks would want you, a family member, to take on the total debt on the property. It's better to let a non-family member come in and buy the property at market rate, and to buy a new home for yourself. Happy house hunting!
It's simple and easy.
The foreclosure date apparently is December. Make up the back payments (plus penalties, etc.) to stop the foreclosure. Side note: Get some of that money from your in-laws. If they haven't been paying in 6 months, they should have plenty of cash. Regardless, though, that's the first step.
The second step is to get them to deed the house to you. Consult with a lawyer, but it might be as simple as a quit claim deed.
The third step is to start making their payments. The mortgage will still be in your in-laws name; I'm assuming the mortgage isn't assumable. But so what? There's a theoretical chance that the lender could invoke the due-on-sale clause. But it's unlikely with a performing mortgage.
The fourth step, at some point, is to refinance the home so that the mortgage is in your name. You won't be able to do that unless and until the house is worth more than the current mortgages (so that the refinance will pay off the current mortgages).
You'll have to move fast. But the process itself is very simple. Just consult with a good real estate lawyer.
Again, I suggest you get your in-laws to contribute some to your efforts. They've been getting a free ride for at least 6 months.
Hope that helps.
I suggest that you consult an attorney as to what can be done. He may possibly contact the lender in your behalf to determine if you might be eligible to purchase the home. It doesn't seem likely but you never know unless you try!
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