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On the mortgage, not on deed. We need to purchase?

Nearly 5 years ago, my father in law had a mortgage on his home through bank one. He wanted to sell. My husband and I wanted to buy as this was his childhood home, none of us in good credit standing. We went to bank two, who kept my father in law on the deed, and put all three of us on the mortgage as my husband and I couldn't get the loan independently secondary to credit issues. Questioned bank two, they said it was legal in the state of Pennsylvania. Bank one now paid off as a purchase and bank two now has the mortgage from which the payment has been getting automatically deducted from my checking account monthly since November 2007. We have mid 600 credit scores, excellent debt to income ratio and ltv ratio. Father in law has since remarried and while he has made no mention of the house, his wife knows he is on the deed alone. We now have two questions. 1. In the unfortunate and untimely event of his death, does she have claim to this property? 2. Is there a lender that would work with us? I've gone to the local bank and would rather pull the mortgage from them all together. by boxerg_244_288 from Honesdale, Pennsylvania. May 15th 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Ok, so your first question was in relation to your mother in law having a claim on the property if your father in law dies.. The Deed is the title to the property.. The title identifies who Owns the home.. The Mortgage (Note) is the security instrument that uses the home for collateral... two separate things.. If your father in law is on the Deed, as you state, then yes he and his estate, heirs, has a claim on the property. This is assuming there was nothing in writing within your agreement that states otherwise.. Keep in mind, no one on this post is an attorney, and these questions should be direct to someone qualified to answer the legal stuff... as far as you being able to qualify, most lenders require a 640 or above, but other lenders go down to as low as 500. Also note that it takes more than a good credit score to qualify for a mortgage, so the best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

May 15th 2012
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Leo Harvey (LHARVEY)
#2 ranked lender in Pennsylvania - 143 contributions

Based on the information you provided, it appears that your mother-in-law would have a claim on the property if she wanted to pursue it as she is an deeded owner, again provided the probate process confirms her title. That being said it could be a relatively simple process for her to relinquish her claim to the property through a quit-claim form prior to settlement if she wishes.The answer to question 2 is also YES. Unfortunately getting you qualified for a purchase on your own requires a complete application and documentation which verifies your credit, asset and earnings history. I work as a loan officer with a local PA licensed Lender who is experienced in these types of loans and I would be happy to work with you to get it done. Give me a call or better yet e-mail. L Harvey@annie-mac.com.

May 16th 2012
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Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,256 contributions

1. only if he changes his will and trust and adds her name on itwhat size is your loan going to be ?? i am a private lender

May 15th 2012
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loan would be in the neighborhood of 125,000-130,000

May 15th 2012
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Mark Simon (mark.simon)
#10 ranked lender in Delaware - 83 contributions

We would be glad to walk through what it will take to get an approval. There is some missing info needed to give you a final plan. Give me a call or direct email and we can have some answers for you quickly. Mark WCS Lending 800-485-1387 Extension 107

May 15th 2012
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Michael Clark (mclark)
#54 ranked lender in Maryland - 4 contributions

Good afternoon. Based on the details you have given so far I don't see a reason why you and your husband could not qualify for the loan with out your father in Law. Their are three basic items that go into an approval: Income, Equity and Credit. If you have at least a 620 mid score, a debt to income ratio below 45% and at least 10 - 20% equity theoretically you and your husband should be able to support this loan. Rates are in the low 4% range and depends on the programs you are qualify for. Feel free to contact me with any questions or concerns you may have. I would be more then happy to speak with you and give you my honest opinion. My contact information is Michael E. Clark 877-882-663 x 1146

May 15th 2012
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Geoff Longwell (glongw_557_660)
#45 ranked lender in Pennsylvania - 7 contributions

I'm in PA and closed a loan with almost this exact scenario just last week. I'd be happy to pass along that individual as a contact for you to verify if you wish. I'm in Central PA and I'd be happy to discuss this with you, certainly options are available. www.englendingpa.comBest,Geoff717-697-6972

May 15th 2012
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Patrick Cashman MNLS# 215938 (pcashman)
#25 ranked lender in Pennsylvania - 18 contributions

Hello and good morning. Local banks are very useful and needed but what you need in this case is a mortgage specialist. As I know that you are just gathering information at this point I think it is important to talk to several professionals to arrive at your answer. I am a mortgage professional of 17 years and it simply comes down to who has the product that can help you reach your goal of owning the home in your name alone. I can get approvals down to 560 scores where very few can and generally speaking local banks can not touch. The key to any question concerning a mounrt is a complete application because everyone's situation is different and a lender's commitment to lend is not made until all the facts are understood and all conditions are me to offer a commitment. It costs nothing to find out the facts and details. Concerning the deed it is a simple question but as I am not an attorney I recommend that you talk directly to one for this answer to legal advice. During your refinance of the home into your name this issue would be resolved completely. I am available to answer your questions directly today at my desk. 215-968-0100.

May 16th 2012
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