It is a legal transaction as long as it is not a short sale that one of you already own, as them must be arms-length transactions between unrelated parties.
Options to avoid double transfer tax:
-Private money loan from mother-in-law. Record the loan, then refinance to avoid transfer fees
-Negotiate a longer time to close by paying a fee to move the closing date. You could pay rent on the unit until you close.
-Clear up why you cannot qualify for 3 months
-Buy a different property in a few months, if they will not postpone the closing date.
So- no vesting period to sell. But the fees are something to consider If they want to take care of this in less than 6 months. Please feel free to contact me directly with any further questions.
Senior VP of Mortgage Lending
1) You on Title - Mother in Law provides financing (She is the BANK) - record the loan and then pay her off over time or until your refinance the property 6 months down the road.
2) Both of you buy it together - 6 months down the road quit claim her off the loan
Feel free to contact me should you need any assistance.
That is a lot of paper flipping. Your biggest hangup is if it is a large condominium building you are going to be faced with paying the condominium association fees twice, you will be paying for two appraisals.
I cannot imagine any home loans today that have an early payment penalty. Talk to your lender to be sure.
Sohail A. Salahuddin | Founder and Team Leader
Innovative Property Consultants Group | Sales and Leasing
Jameson Sothebyâ€™s International Realty
425 W. North Ave. | Chicago, IL 60610
O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030
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