Posted by Ed Garcia on November 30, 2000 at 10:16:27:
You say that your parents are willing to sell you the condo at a discount and allow you to take over the payment on the existing first mortgage. Tamer, you don’t tell us the interest rate of the existing first for me to advise you if it would be more beneficial for you to refi the first, or acquire second mortgage.
Tamer, if this were my deal, I think I would ask my parents to borrower on the condo for me and then take over the payments on the second as well as the first. Since your parents trusted you enough to allow you to assume their first to begin with, I’m sure they wouldn’t mind. This would be faster and cleaner way, from the standpoint of qualifying and down payment. You could have your parents quitclaim the property over to you after the refi and then document your payments so that you can have credit for making the payments, and in year or two when you do a new refi in your name, you would have proof of payment history.