Basic requirements fsbo

[parallon]

Hello all. I have an opportunity to purchase a house from my friend's cousin for the current amount owed on the loan. She currently has ARM finincing, and is about to lose the house because her mortgage is about to jump. Anyway, I would really like to help her out, and would like to make this as painless as possible for the both of us. So, I was just wondering if there was anyone out there that could give me a generic process for going about this, i.e. necessary steps (appraisal, title check, etc.) and also the necessary forms involved. As for a purchase agreement, is it legal to use forms published by my local real estate commission, or are these only for licensed real estate persons?

Thanks,

Parallon

[slh2002_77]

You need to get your financing set up and get in touch with a real estate attorney they can handle the rest.

[Codythebest]

Title search, quit claim and assume the existing motgage. Put yourself on the insurance and refinance it...That's it.

[rama1]

Title search, quit claim and assume the existing motgage. Put yourself on the insurance and refinance it...That's it.
Why he needs to assume existing mortgage if it said that rates are going to jump for it? He and the seller should negotiate with the bank an ARM situation and because seller has a direct buyer bank COULD make some rates adjustments. However, I would deal either with RE attorney or with a RE agent and with a new mortgage. Unless, of course, buyer's credit is not very good.

[parallon]

Hey, thank you all for your insight. Actually, things have dramatically changed in the past couple of days. After talking with her some more, I found out that she contacted the lender in January because she was having issues keeping up with the payments. He (the president of the mortgage company) convinced her to sell him the house for the balance on the note, keep the mortgage in her name, and give her an 18 month lease to purchase option for $162k + ALL closing costs. The sad thing is that the value on the note was only $128k, and the current value of the house is approximately $180k. So, needless to say, she instantly became a tenant and no longer reserves the right to sell the house. But the lender is sure interested in getting in contact with me.

So, now that totally changes the direction of this post. I feel really bad for her and she just got rejected on renting a cheaper house because she doesn't have enough rental history. So, besides being totally unethical, do any of you think this is something she should pursue in the courts? Could she have a case? She got totally taken advantage of.

Thanks again,

Mike

[slh2002_77]

Sorry to hear about your friend. This may seem immoral but nothing illegal about it. She had the option of selling the house her self especially if she had all that equity in the house. The definition of a contract is an agreement of all parties involved. I'm sure there was a contract written up between the two. The lender is taking advantage of her lack of knowledge for the circumstance. Real estate investors do this every day. If the deal hasn't been finalized I would tell her to go and ask for about $25,000 dollars from this guy. He'll probably say no but it's a starting point. She needs to get something out of it.

[Codythebest]

Why he needs to assume existing mortgage if it said that rates are going to jump for it? He and the seller should negotiate with the bank an ARM situation and because seller has a direct buyer bank COULD make some rates adjustments. However, I would deal either with RE attorney or with a RE agent and with a new mortgage. Unless, of course, buyer's credit is not very good.

Oh no, no need to. It's a 30 minutes buy in this case. Buyer may buy, make a contract for sale, go to a mortgage broker or bank, apply for the loan, get the appraisal, wait for the underwriter, check FICO, provide source of funds, etc...etc...and get the deal in about 30 days...
I just don't want to wait 30 days when I can do it, cheaper and faster...But that's me though....