Posted by Brent_IL on February 11, 2002 at 10:27:48:
Lower payments. Much of the payment on the first is still going toward interest and won’t be missed. Interest rates on seconds are generally higher. The rate will drop as a first. If the payment per thousand drops, she can afford a larger loan and give the house to you and her daughter subject-to.
Need a Creative Solution to this!! - Posted by Davros
Posted by Davros on February 10, 2002 at 18:13:35:
I would like some ideas on how to make this happen. We are currently living in a home that we would like to purchase. We have very poor credit, and very little money to put down on this home. The home is the Mother-In-Laws. The house appraises at around $105,000. The mother-in-law has owned the home since 1996; we have lived here 2 years. She needs out from under the home and needs $94,000 for it. That includes the second mortgage she has on it. I have found a lender that will do a mortgage for 80 percent of the value of the home. I still need to come up with the $11,000 that she needs. Any ideas how we can make this happen so it works for both parties??
Ed
Re: Need a Creative Solution to this!! - Posted by Glen SoCal
Posted by Glen SoCal on February 11, 2002 at 01:20:32:
Can you just take over your mother-in-laws payments subject to the loan? It would be the least expensive option. Or as Brent IL, mentioned, have her refinance for a lower rate, then take it over.
Re: Need a Creative Solution to this!! - Posted by Brent_IL
Posted by Brent_IL on February 10, 2002 at 21:47:59:
It’s up to your Mother-in-law. She needs a higher LTV loan, but she is the one that will have to qualify for the payments. Your income won’t help.
Interest rates are fairly low. Could she re-finance both existing loans into a new first at a lower interest rate with a lower payment?
Re: Need a Creative Solution to this!! - Posted by Davros
Posted by Davros on February 11, 2002 at 07:49:08:
She needs to get out from under this house do to the fact that she is looking to purchase a new home. The amount she wants for the house gets her the money she has in it to pay bills off. As for refinance, I am not sure where that gets me, could you explain how that would benefit me?