Foreclosure in Kansas City>Question Details

Mr. Grant, Home Buyer in Kansas City, KS

My in-laws are losing their home, can i take over the payments?

Asked by Mr. Grant, Kansas City, KS Sun Nov 27, 2011

My In-laws have not paid on their home in atleast 6 months. Is there a way for me and my wife to take over the payments? we have been looking for quite sometime and currently reside in said residence. They also own another home and are moving there. They also have a loan out against the house making the payment double what it should be, prior to this second loan they paid around 700$ per month now they pay 1200. we can pay the mortgage current. just do not know exactly who to speak with to start this procedure.any help would be appreciated. the only notice they have gotten is the attorney notice stating whether they want to keep or lose the home, the date is in December.

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The question is not what they are paying a month, but what is owed on the house for both loans and it that more than the current value of the house. If the bank won't let you take over the payments in your name or if you have to refinance, you may not be able to because a bank won't refinance a house that doesn't have enough equity in it. First, find out the total amount owing on the house, next find out the current value of the house. If the loans are more than 80% of the value of the house it's probably not going to work. I would seek out a good loan broker and get their opinion as to whether you would be able to refinance if the lender won't put the loans in your name, and whether there is equity in the house.
1 vote Thank Flag Link Sun Nov 27, 2011
Under normal circumstances, you can certainly take over the payments on your in-law’s house if the lender will allow you to do so. You could also purchase the house from them.

I suspect that your situation is not “normal”. 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.
1 vote Thank Flag Link Sun Nov 27, 2011
I can come by and dicscuss different options for you if you would like.

Angela shopper
Keller Williams
0 votes Thank Flag Link Sun Nov 27, 2011
Dear Mr. Grant,
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.
0 votes Thank Flag Link Sun Nov 27, 2011
What Don answered is correct. If the payments are current, it's unlikely the bank is going to call the mortgage due. Most mortgages have a clause that says the bank has the OPTION to demand full & immediate payment if the house is sold, or in your case, ownership is transferred. I know of lot of people who have sold houses & the bank never bothers them unless the payments aren't made.
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.
Web Reference:
0 votes Thank Flag Link Sun Nov 27, 2011
Mr. Grant,

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!

0 votes Thank Flag Link Sun Nov 27, 2011

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.
0 votes Thank Flag Link Sun Nov 27, 2011
Don Tepper, Real Estate Pro in Burke, VA
Hello Mr. Grant,
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!

Good luck!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Sun Nov 27, 2011
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