Re: In a pickle, need some pros for some advice. - Posted by GL(ON)
Posted by GL(ON) on July 04, 2004 at 16:19:46:
How about this. Go to the bank, tell them you want to cure their problem with your brother’s mortgage by buying the house. To do this you need to increase the mortgage by $10,000 so you can pay off the arrears, pay off the back taxes and pay off any other debts you may have lying around.
If they ask where your down payment is, point to the $7000 you have in the bank.
I won’t insult your intelligence by pointing out how you write this up with your brother, so that you actually get the place for taking over the loan without having to touch your $7000.
So now you own the house and pay a payment to the bank instead of rent to your brother.
If you can’t qualify for a loan to buy the place, you could try talking to the bank and offering to make the payments directly to them, plus an extra $50 a month till the back payments are caught up. Leave it in your brother’s name and buy it subject to. Let the bank think you are helping your brother out of a jam, which isn’t far from the truth at that. This way you don’t have to qualify for a new loan and no new loan appears on your credit record.
There are lots of ways to handle this. First I would talk to the bank. Tell them the truth, that you are trying to help your brother out of a jam, and that he has authorised you to speak to them and get all the info necessary to make a deal. You may need to get your brother to sign an authorisation.
I would talk to the bank though, and see what they will take.