Sheila:
To remove your Uncles wife from any further liabilty on the loan you will have to either get a formal release from the lender (which may be cumbersome to obtain) or perhaps your Unlce can sell to you and take back a Land contract which then can be sold and converted into immediate cash. He would then use that cash to pay off the other loan and retire that debt.
You would then have only the land contract payment to worry about. This may also give you some peace of mind and be “cleaner” as well. I would have some concerns paying my unemployed Uncle on a land contract instrument and then relying on him to make the mortgage payment. What if he did not make the payment?
Hi everyone,
I’m trying to put a deal together with a family member who is going through a divorce. My uncle’s wife signed over a quit claim deed to him. He is unemployed right now and is having serious problems making the monthly payments. He wants to sell the house but is concerned that his wife will still be liable for the debt and at the moment I might not qualify for financing. I really want this house to live in myself because the monthly payment and rate on the loan he has is very affordable for me. I was wondering which method would be the best to offer him a lease option or do a land contract. Any advice would be appreciated