Quick transfer of title on encumbered property - Posted by Walter Shorts

Posted by Michael Morrongiello on March 07, 2000 at 16:00:10:

Your mom can sell to you the property and take back a purchase money mortgage secured by the property with repayment terms that are agreeable to you. That mortgage can then be purchase from mom for CASH. From the cash proceeds paid for the mortgage we would retire any existing debt, bring all taxes current, etc.

When the “dust settles” after the closing you would have one mortgage payment to make on that mortgage note which was sold.

The actual repayment terms of the mortgage you will be paying on are very important in deteriming how much cash can be generated to you mom above and beyond that payoff.

Michael Morrongiello

Quick transfer of title on encumbered property - Posted by Walter Shorts

Posted by Walter Shorts on March 07, 2000 at 13:49:13:

I need advice on how to obtain title to a 2-unit income property owned by my mother. She wants to give the property to me. The property is worth 150K and has a 75K first mortgage. I would like to obtain a new 60% first mortgage (90K) to pay off the existing financing and arrears in property taxes. I will use the rest for repairs and improvements. This should leave me with approximately 60K in
equity to leverage future purchases.

I am willing to pay an above-market financing rate as long as I maintain a positive cash flow. The monthly income is approximately $1500.00. Both tenants’ rents are secured via Section 8 contracts. Property taxes are around $3000+ per annum.

Due to my currently deficient credit and cash flow situation, financing from a conventional lender seems a long-shot. I need suggestions as to a quick and efficient way acquire this property. All suggestions are appreciated.