Home Buying in 95121>Question Details

pokergirl56, Home Buyer in Flint, MI

if my name is listed on the quit claim deed can i buy the home if is a short sale or goies into foreclosure?

Asked by pokergirl56, Flint, MI Fri Sep 27, 2013

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14
No .. you cant ... anyone on title or a family member cannot buy a short sale
1 vote Thank Flag Link Fri Sep 27, 2013
Hi pokergirl56

if you are purchasing house in California run me by complete scenario I might be able to help you .

Omar Khamisa
Mortgage Loan Manager


Omar@MSJMortgage.com
NMLS#: 369325
Cell: 510-648-5535
Fax: 510-751-4823
Web Reference: http://msjmortgage.com
0 votes Thank Flag Link Sun Oct 13, 2013
I had a borrower who had never been on title, but they wanted to purchase their father's home at a courthouse sale...then refinance. It was an absolute NO GO.
The only way to get this house is to take formally assume the loan (if possible) and take over the payments at the original loan amount.

Arms length transactions are a not allowed.
0 votes Thank Flag Link Fri Sep 27, 2013
Pokergirl:

Bill McCord brings up an excellent point, and if you quit the property when you were on the loan, then Claudia is right, no lender, let alone conventional lenders, would touch a loan for you for this property, and likely any other.

As Charles Burtterfield stated, what you can do depends on the facts. I've given you some exemplar scenarios that would allow for you to proceed and others are operating from scenarios that would not allow you to proceed, so I suggest you consult with someone privately to determine if YOUR actual scenario allows you to proceed.

Yes, I'm also a loan originator for a mortgage bank, and depending on your facts, you may get a conventional loan. Again, the answer is fact specific and depends on the time lapsed since you quit claimed, your relationship or lack thereof with the current owner(s), the reason you quit claimed, your current financial situation, what state you live in, what loan program you apply for, the condition of the home you are talking about, whether it was built on site or is a manufactured home that was brought on site as a trailer, what other liens are on the home, whether the home is in a rural area or an urban area or on an Indian reservation, and whether there is an HOA for the home to which you owe money, etc.

Again, depending on the facts, at least one of the people who have responded to this post is right. That is why you need a private consultation with an expert who understands lending and won't jump to conclusions till he (or she) has determined all the facts applicable to your question.

Mitchell Pearce
408-639-0211
mitchell@handsonreatlor.com
0 votes Thank Flag Link Fri Sep 27, 2013
No one seems to have mentioned that a simple Quit Claim is only relevant to the property. You still have full responsibility for any loan you may have had at that time.
You don't give us sufficient information to give you a definitive answer to your question but i will repeat what several others have. Mortgage fraud is serious and you would be well advised to get advice from an attorney on this issue.
Good luck,
Bill
0 votes Thank Flag Link Fri Sep 27, 2013
Mitch, Our lenders will not touch this.
If you, as a real estate agent, know some one who can, then they are not dealing with conventional financing.
0 votes Thank Flag Link Fri Sep 27, 2013
Claudia:

Whether she can get conventional financing depends on how long ago she quit claimed the property and for what reason she quit claimed the property, her current relationship (if any) to the seller, and then the usual underwriting concerns that Julianna alludes to.

Best to know the facts before jumping to conclusions, which is why a private full disclosure consultation with pokergirl has to happen before she can get a real answer that actually applies to her situation. Then, if the facts support going forward, a realtor who can take a hands on approach and guide her to success is what she needs.

Mitchell Pearce
408-639-0211
mitchell@handsonrealtor.com
0 votes Thank Flag Link Fri Sep 27, 2013
Lenders want everything documented. If lenders know everything about your connections to the property do you believe they would lend you money?

The short answer is yes you can buy the property. If you haven't met obligations to a mortgage lender, a future mortgage lender isn't likely to think you will meet your obligations to him. Lenders base the interest rate they charge on the perceived risk of the borrower. Depending on the risk they see they will charge a different interest, require more down payment, or not lend you money.

If your past connection to the property identifies you as a higher risk, you will have to pay more. If you are willing and able to pay, you can buy.

Home values in San Jose zip 95121 can be viewed at
http://julianalee.com/zip-code/95121-statistics.htm

Recent home sales in San Jose zip 95121 are at
http://julianalee.com/zip-code/95121-home-sales.htm

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty, the nations largest
Cell 605.857.1000

Over 20 years experience
Over 1,000 homes sold in Santa Clara County and San Mateo County
.
Web Reference: http://julianalee.com
0 votes Thank Flag Link Fri Sep 27, 2013
Mitchell
She cannot purchase this home with conventional financing.
0 votes Thank Flag Link Fri Sep 27, 2013
Pokergirl:

If you previously quit claimed the property some time ago, then you have not been an owner for that length of time. As such, you have no current interest in the property. As an independent purchaser not related to the owner, you have as much right to purchase the property as anyone else.

If you are bidding for the property at a foreclosure sale, in which case you are paying all cash, then you have as much right to be the highest bidder as any other member of the public.

If you are related, currently, to the seller, then, in a short sale, the lender may not approve of the sale, UNLESS, you present the highest offer by some significant amount. If you are not related, currently, to the seller, say through divorcing an ex spouse over a year ago, then you may buy the property like any other buyer.

Mr. Greer is alluding to a "smell test". The smell test is basically the question, "Is anything fishy going on?" In this case the question is: "Did this person quit claim so as to not be liable for paying the loan, and with the intention of buying the property so the bank loses and the buyer gains?" If the answer is yes, then you may have a problem along the lines Mr. Greer suggests. If the answer is no, such as, "I divorced and quit the property, but my ex is now losing the property and I always liked it, and I can afford it now, and no my ex and I are not getting back together in that property." then I don't see anything to worry about. In fact, in such a case, I would be interested in helping you buy the property. I don't see a reason, as long as we can show there is no collusion between you and the seller to get the property for too much below market value, and you did not quit claim for the sole purpose of buying the property in a short sale, that you would not be eligible for a loan to finance your purchase.

There are shades of grey situations about which you might want to discuss with an expert Offline, since they would involve your personal situation in details that you probably don't want the world to be privy to. Feel free to call me at 408-639-0211 or send me an email at mitchell@handsonrealtor.com.

Yours truly,

Mitchell Pearce
mitchell@handsonrealtor.com
408-639-0211
0 votes Thank Flag Link Fri Sep 27, 2013
As another responder pointed out, that you propose sounds like mortgage fraud.

However there are legitimate programs available that may help you, with the knowledge and approval of the lender, so that you do not run the risk of committing mortgage fraud, however I need much more information about your particular circumstances to know if you might be eligible for such a program.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
Broker/Owner: The Butterfield Real Estate Firm
Cell Phone: (408)509-6218
Email Address: charlesbutterfieldbkr@yahoo.com
BRE#00901872
..
0 votes Thank Flag Link Fri Sep 27, 2013
Not unless you enjoy going to jail for mortgage fraud?

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Fri Sep 27, 2013
You will not be able to get financing from a conventional lender as it is not an 'arms length' transaction.
You may be able to purchase all cash, but getting that refinance will not be possible.
You may take over payments with the current lender.
0 votes Thank Flag Link Fri Sep 27, 2013
That depends. In a short sale the Lender's bank doesn't like to see a family member purchase. The quit claim deed only states that you do not have any claim to the property.
0 votes Thank Flag Link Fri Sep 27, 2013
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