 ErRoRPremium
join:2002-10-26
Tullahoma, TN | contract to take over feiends house hey guys,
my friends are having a hard time making payments on their house and want me to take over payments. I really want this house and we've agreed for me and my wife to take over payments to get them out of it. What do I need to do as far as drawing up a contract where it's legal so when we take over payments it's all legit. I can swing the payments, but I want it to be legal, but I'm not sure how to draw up a contract? Can someone help me draw up a contract to protect us? I'm told him if I miss 3 payments, I will turn the house back over to him, but I won't miss any payments. they are moving in with their grandparents because they can't make the payments and I can. the pay off on the house is 58k and I don't want to go through a bank because my credit isn't the best, but if we do it this way, it will work out better for both us. We've been best friends for 20 years and have done this type of things before and it's always worked out good. Can someone help me figure this out? Thanks guys/gals.
Eric Golden
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look me up, I enjoy talking about projects! |
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 I Wish3If I could be anything it won't be youPremium
join:2009-03-25 | reply to ErRoR
Before getting a lawyer go to his title company and ask them what to do I am sure the advice will be free. |
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Have them grant you the house with a quitclaim deed |
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ErRoRPremium
join:2002-10-26
Tullahoma, TN | reply to ErRoR
Thanks for the info, ill do what u suggested. Thanks again.
Eric |
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 Mr NeutronLooks like I picked the wrong week toPremium
join:2005-05-30
Gorham, ME
1 edit | reply to ErRoR
said by ErRoR:What do I need to do as far as drawing up a contract where it's legal so when we take over payments it's all legit. I can swing the payments, but I want it to be legal, but I'm not sure how to draw up a contract? Can someone help me draw up a contract to protect us? As previously suggested, you really need to get with a lawyer. If you can't afford a grand or three for a lawyer, chances are also good that you can't truly afford to take over the house payments, either.
said by ErRoR:the pay off on the house is 58k and I don't want to go through a bank because my credit isn't the best, but if we do it this way, it will work out better for both us. I understand that you and your pal are pals, but you still need to get a lawyer.
said by ErRoR:We've been best friends for 20 years and have done this type of things before and it's always worked out good. Can someone help me figure this out? Thanks guys/gals. Yes, someone can help you figure this out. They're called a "lawyer."
Contracts help friends remain friends because a well-written contract defines who needs to do what, and when they need to do it by. Unfortunately, like anything else, good contracts do not come cheaply. Which is why lawyers tend to charge money for their services.
Believe me, I understand where you are coming from on this. But going 58K into debt is going to be a disaster unless you do the necessary legwork, first. If your friend is truly your friend, they will say "yes" when you tell them that you want to have a local lawyer draw up a contract, and that you'll split the lawyer's fee with him.
If your friend gives you any guff about how a lawyer isn't necessary at all, do not go through with this. If he's truly your friend, he wants to see you protected in this arrangement. Which is why you want to hire a lawyer to draw up the contract: so that you're both protected.
Again, I understand that you want to do this on the cheap. But arranging to take over someone else's house payments is not something you should attempt on the cheap (unless, of course, you don't really care how the deal works out).
There are Legal Aid lawyers to help out folks who do not have much money, but need to get something done. Have you tried looking around locally for such services? You might try a Google search with the phrase "legal aid" along with your city or state.
ETA: You don't even have to do that. Just click on the below link and you'll bring up the first page of Google results for your city (just click on the "proceed" link in the preview). There are Legal Aid offices close by you, as near as I can tell.
»preview.tinyurl.com/cjmzd2
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We could use the £5,000 to buy a spoon. And then fill up with ice cream. |
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 hortnutHuh?
join:2005-09-25
Somewhere
 ·Comcast
·BCTelco
 ·Skype
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Check out your state bar -
»www.tba.org/lawbytes.html
I have written contracts to start 2 partnerships, dissolve the same partnerships with different people and then taken the material to an attorney for review and to make it 'legal'
Check library for books on the subject, I usually check Amazon first to find good books and then check them out, if I think I need them, I will buy them.
I would have something in writing, as others have said, go to a Title company and have an Attorney review.
I did a 1031 exchange of property some years ago, and had my friend use her attorney to draw up the paperwork and file same. No Problems.
You may want to get a hold of the Mortgage, Trust Deed or Contract Papers your friend has with the bank. Review them carefully to determine that there are no gotchas. 
Good luck to the both of you.
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Darn, its gettin that time to go to Wallymart to gits me picture taken agin.
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We're covering contract law in my business law class right now, my advice, get a lawyer. There is a lot of gotchas when it comes done to the nitty gritty of a contract. A lot.
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"There are two American flags flying on the property I reside on. Anyone who tries to take them down will be rendered inoperative." -Lindy |
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valvoj
join:2002-01-23
Cicero, NY | reply to ErRoR
I've heard this site advertise on ESPN radio so they must be good 
»www.legalzoom.com/real-estate-de···iew.html |
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tcopePremium
join:2003-05-07
Sandy, UT
kudos:1 | reply to ErRoR
I think a lawyer would only cost a few hundred dollars in a situation like this. Their must be many contracts that the attorney can simply modify.
Yes, when your dealing with something this big you both need to do it correctly. Otherwise someone could get really burned. Also, you have a 3rd party involved... the mortgage company. I think most mortgage contracts state that the property cannot be rented out for the first year of so (preventing someone from buying a home for someone who should not be buying a home). |
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 JeffreyWilpon please sell the MetsPremium
join:2002-12-24
Long Island
kudos:3 | reply to ErRoR
I'll echo the comments so far, and say please, get a lawyer. |
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I Wish3If I could be anything it won't be youPremium
join:2009-03-25 | reply to Mr Neutron
said by Mr Neutron:You might try a Google search with the phrase "legal aid" along with your city or state. "Legal Aid" is the last thing I would recommend to anyone, they are lawyers that can't make it on their own. |
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 CylonRedPremium,MVM
join:2000-07-06
Bloom County
1 edit | reply to ErRoR
R-e-a-l e-s-t-a-t-e lawyer. |
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 KibblesPremium
join:1999-07-31
Mission Viejo, CA | reply to ErRoR
58k mortgage balance is about $200.00 a month?
I guess you can't assume the mortgage or need the mortgage/property tax deduction?
As others have posted you definitely need an attorney to write it up to protect all parties involved.
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»www.angryrenter.com/ |
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 NanoprobeCrunching in memory of MomPremium
join:2003-05-11
Crab Nebula
kudos:1
·magicjack.com
·Skype
1 edit | reply to ErRoR
Most mortgages these days are not assumable. You would have to qualify for a mortgage on your own. Check with the mortagae holder. If the currnet owners are going to let it slip into forclosure the lien holder may be willing to work something out with you. Now if you want to rent it from them with an option to buy that is a different story. Like others above have suggested, a good real estate lawyer should be consulted if that is the case. Good luck.
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The circumstances of life, the events of life, and the people around me in life, do not make me the way I am, but reveal the way I am. Dr. Sam Peeples.
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quatrixPremium
join:2005-02-11
Davie, FL
kudos:2 | reply to ErRoR
Lawyers aren't the answer to everything. |
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Mr NeutronLooks like I picked the wrong week toPremium
join:2005-05-30
Gorham, ME | reply to I Wish3
said by I Wish3:said by Mr Neutron:You might try a Google search with the phrase "legal aid" along with your city or state. "Legal Aid" is the last thing I would recommend to anyone, they are lawyers that can't make it on their own. True, Legal Aid lawyers are the last lawyers I would recommend to someone who has money.
Does the OP have money? I don't have the answer to that, which is why I brought up Legal Aid. What the OP is looking to do shouldn't take that much time or effort. After all, he's looking to assume a mortgage, not engineer a corporate takeover.
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We could use the £5,000 to buy a spoon. And then fill up with ice cream. |
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said by quatrix:Lawyers aren't the answer to everything. Sure if I want to fix my sink I would call a plumber, but when it comes to an issue such as this a lawyer is an answer to everything he is asking... |
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 dispatcher21911 Where is your emergency?
join:2004-01-22
united state
kudos:1
·Charter
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First, make sure the loan is assumable, most are. Then contact the lending bank, tell them that you are going to be assuming the loan and need any paper work for that. Most of the time, its just a credit check, you sign some paperwork and the bank puts the loan in your name. Also check in with the county auditor to complete any paper work they need completed. |
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Mr NeutronLooks like I picked the wrong week toPremium
join:2005-05-30
Gorham, ME | said by dispatcher21:Then contact the lending bank, tell them that you are going to be assuming the loan and need any paper work for that. Most of the time, its just a credit check... According to the OP, a credit check is exactly the sort of thing he's trying to avoid with all this:
said by ErRoR:the pay off on the house is 58k and I don't want to go through a bank because my credit isn't the best... Of course, if this were a couple years back, we'd be laughing: all he'd need is a pulse.
Nowadays, though, lenders scrutinize potential borrowers the way a proctologist scrutinizes a patient during a rectal exam. The OP sounds like an earnest guy, but even folks with good credit are finding the going tough right now. So I don't know what kind of luck the OP is going to have (does he know his current FICO scores, for instance?).
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We could use the £5,000 to buy a spoon. And then fill up with ice cream. |
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