Property Q&A in Margate>Question Details

Tabatha, Home Buyer in Margate, FL

my brother has a house valued at 489,00 and the balance of the loan is 132,00 he is currently 4 months behind

Asked by Tabatha, Margate, FL Sun Jan 18, 2009

can we quit claim or quick claim deed the house to me if so what happens do i pay back payments and take over mortgage please help want to save property

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There are many options that you brother may have - I would suggest talking with a modification company. Please see that attached article about finding a reputable one. They may be able to do a number of things to help. If you want to help him and make arrangements on your side that is an option but remember there is a clause in his original mortgage that usually calls the entire loan if any interest in the property passes i.e. quit claim deed. Contact me directly if I may help you or get you the direct number for the modification company in the article.
1 vote Thank Flag Link Sun Jan 18, 2009
Why not simply loan your brother the back 4 payments, let him keep the house in his name
1 vote Thank Flag Link Sun Jan 18, 2009
Real Estate Agents are not licensed to give Legal Advice. You should call a Real Estate Attorney. They will be able to give you more accurate advice.
1 vote Thank Flag Link Sun Jan 18, 2009
Actually, Tabitha's question, IMHO, isn't a legal one; rather, she appears to be exploring her options.

Following is another option that you might not have considered. (You probably should work with a knowledgeable real-estate attorney and title agent/attorney to help you set up the following transaction.)

You could work with an attorney to help you set up an entity (LLC, S-/C-Corp, etc), and to help you set up a land contract for that entity to acquire your brother's property. You could also work with a title company to set up an escrow/servicing account to hold the title and handle the payments. And you could also have that attorney to draft a lease agreement for the arrangement with your brother. Since the title, in a land contract transaction, doesn't transfer until the completion of the terms therein, this transaction should not trigger any "due on sale" clause in your brother's original agreement. (You'll of course want to verify this with your own attorney.)

After your brother gets out of his jam, then you can either cancel the contract or simply sell him the entity.
0 votes Thank Flag Link Sun Jan 18, 2009
I'm not sure that after reading the article that Lisa posted that I'd ever use a mortgage mod company, BUT I've done lots of them myself.

I like Daniels response regarding loaning your brother the money, but if he is in a situation where he's lost his job, had medical bills, etc. where he will still not be able to make the payment, a mortgage mod or forebearance would be better.

Any reputable agent who does these does not charge upfront fees, you should still consult with a reputable real estate attorney in the Broward area to see what they recommend and what they would charge for their services. It is fairly easy to do a mortgage mod or forebearance agreement if your brother has mitigating circumstances, especially if he has a Freddie Mac or Fannie Mae loan. To help stop the pain, if you are willing to loan him the money (bless your heart!) then find an attorney and see what the recommend after reviewing all of the information.

Good luck to you both
0 votes Thank Flag Link Sun Jan 18, 2009

Your brother can quit claim the deed to you, but your lender will consider this a "sale" and therefore there will be closing costs associated with this transaction. You can't just 'take over the mortgage' unless it is assumable.

There are also many ways for your brother to get help with the situation that doesn't involve you, or it could involve your assistance. It depends on both of you, as well as what type of loan he has:

Is it a Freddie Mac, Fannie Mae, FHA Loan, VA, assumable, adjustable, fixed? Since the loan to value is so good, the mortgage comapny will be willing to help out if he wants to stay in the house. Who placed the $489K value on it?

The best thing to do at this point is to consult with an experienced agent on the matter or get a real estate attorney to help guide you.

If I can be of any further assistance, please let me know.
0 votes Thank Flag Link Sun Jan 18, 2009
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