Posted by JohnBoy on December 05, 2000 at 17:31:04:
Just have her deed the property over to you. Since you are both on the deed then all you need is to have her sign a “quit claim deed” over to you releasing her interest from the property. Then you just bring the loan current and continue making the payments on the house directly to the bank yourself. This way you know the payments are being made every month.
If part of your deal is to pay her more than what’s owed on the house, then just have her carry back a second mortgage for the difference. Then you pay the first payment to the bank and send her a separate check for the second mortgage payment.
At this point it is HER that is facing a foreclosure that will ruin HER credit since it is HER that is on the mortgage. So unless your talking a big amount of equity here then anything you would be willing to do to bring the loan current would be a blessing to her since it’s YOU who would be saving her credit.