Is there risk involved, Yes.
You and anyone on the original note is ultimately responsible for the note, no matter what paperwork you draw or have drawn up.
Potential way out would be to have the person making the payments get qualified an buy you out with your original lien holder being paid in full.
For questions about your legal obligations, consult with "real estate" attorney.
The bank does not care who the check is from, as long as the check clears and the mortgage is paid off. That said, do you want to sell him the home or just get a little help with payments on the short term? If you want to sell it to Dad get some help from a Realtor or Real Estate attorney. Would re-financing the property help you through a tight financial period? You should consider all of your options. Good luck!
As an investor, I do this quite often, although it is usually for owners who are nearing foreclosure or are otherwise in a financial predicament. Typically, I just make up the back payments and then take over the note.
If things don't work out with your dad, I'd be glad to visit with you about taking over the note, providing you some cash and making up any missed payments.
Guy E. Gimenez
Investor / Broker
The PowerHouse Group
CMG Group, LLC
Stop. What problem are you trying to solve? I need to know that before giving you a response. Remember, if you don't know where you're going, any road will probably take you there. What's the issue causing the question to be asked?
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
Jeffrey Nyland, REALTOR®, GRI, SRS, ABR
The Nyland Team
Prudential Texas Realty
Jeffrey Nyland TX AUC# 16644