Solds08, Other/Just Looking in Amarillo, TX

my son wants to buy a house from my sister that has a lein on it from welfare years ago how does he go about it

Asked by Solds08, Amarillo, TX Tue Feb 28, 2012

can he get it switched over by aming monthly payments to welfare like a mortgage

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Barbara Coker, Mortgage Broker Or Lender, San Antonio, TX
Wed Feb 29, 2012
I have one more warning. If your sister has a current loan on the property, in addition to the old lien, you should be very careful about taking title before she pays off the loan. Most loans have a "due on sale" clause. If she transfers title to your son, the loan could be called due, and they could foreclose on her.
We don't have enough information to help you here. I suggest you discuss with a real estate attorney.

Barbara Coker
NMLS#228545 Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
0 votes
Guy Gimenez, Agent, Austin, TX
Tue Feb 28, 2012
Your son can purchase the home regardless of the lien, however, he may have to purchase the home leaving the existing mortgage (and lien) in place unless he can successfully negotiate that lien with the holder of same. Your son doesn't necessarily have to obtain a new loan, but I would still recommend he get a title search run to ensure there are no other title issues.
Web Reference:  http://www.phgbrokers.com
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Barbara Coker, Mortgage Broker Or Lender, San Antonio, TX
Tue Feb 28, 2012
The lien would need to be cleared at closing by the proceeds of the sale. There are also issues with the type of financing he would use since he is related to the seller. If he is buying his relatives current primary residence, he can use FHA with only 3.5% down. Whatever loan type he gets, he will be making his payments to his current lender. The seller is also allowed to pay up to 6% of the sales price to cover his closing costs and prepaid escrows. We needs to know more about your sister's current use of the home.

Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
Web Reference:  http://www.thecokerteam.com
0 votes
Bruce Lynn, Agent, Coppell, TX
Tue Feb 28, 2012
You'll have to get that lien removed. You'll probably need to go to the agency who placed the lien to see what steps you'll need to take. Probably you'll need to pay off whatever amount the lien is for. You may also want an attorney to assist you so that you get the lien release at the same time you make the payment.
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Tue Feb 28, 2012
That is up to the agency that is holding the lien, if they are willing to release it and take payments from your son so be it. If you son is getting a mortgage, they can pay it off from the proceeds just like any other lien, this would be the easiest way, just pay it off in full at closing.
0 votes
Don Groff, Agent, Austin, TX
Tue Feb 28, 2012
The lien will have to be paid in order to sell the house. You should also speak with a lender assuming you will need financing. Because this is NOT an Arm's length transaction you should make sure there won't be any issues. If your sister is behind on payments that will also complicate matters.

I would speak with a real estate attorney as well because of all of the issues you will face trying to buy this property.

Best of luck to you.

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
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