forclosure bail out

looking to help parents with problem, house is in forclosure and they want me to buy it from them. value 135000, payoff is 96000.any way to get property in my name ?

Are you going to buy the home from them, if so then you should not have a problem. If you are looking to get the property in your name to refinance, you can get a quit claim deed. However this may cause seasoning issues with lenders and lenders often check to make sure you are not doing a quit claim simply to get out of foreclosure. Contact delta funding they use to have a program that allowed this type of thing. I havent used them in a while so I would talk to someone about you situation and see what they can do.


Purchase the home from your parents. Have them sell it to you for $135,000 and gift you the difference in equity. So you are purchasing it for 135K and your loan amount is for 96K. This way your LTV is low and you have not triggered any seasoning issues.

I agree with Chris…the quit claim deed approach will limit your options.


Scott Miller

Word to the wise, make sure your lender doesn’t have a problem with you, as their child, buying the property. Some lenders will look at this as an “arms lenght transaction”. If they are already behind on the mortgage you may have a problem.

Hope this helps

Loan Officer


I believe the term you were looking for is “non-arms length” transaction. Buying from your parents is going to be a “non-arms length” transaction, but as long as everything is on the up and up it should not be a problem.

:cool i have a question here on this ::: HOW much time do you have before the sale ?? HAVE you or your parents waited tell the 12 th hour and want a magic over night fix // something in a few days ?? NOT going to be if this is the case as money people need at least 1 to 4 weeks to get all things in place and check it all out

Good Morning TDD,
This is a great candidate for a sub2 purchase. No financing required. Are you familiar with this type of purchase ? You could be done in the amount of time it takes your title officer to research the loan(s).

Problem with that is that he has to come out of pocket to catch the payments up.

:cool correct chris the fact still is there he needs the money to save the home and just getting it in his name will not do it !! AT best this will only slow the foreclouser as the bank will be thinking money is comming as it was sold /// but this would only put it off a 30 may be 60 days tops

your problem is doing from parents to son Delta- Option one and any other lenders are going to consider this a bailout and will not allow it. Due to current market conditons these programs are gone. Hard money is the only way or sell it to a non family member. I am in the difficult loan business and deal with this on a regular basis. I have successfully sold a propertyy to an investor and whatever they do( lease back) is up to them

:cool hey it would look as if they want to keep it in the family and not seel outside as they want to keep there home as well

The answer to this question depends entirely on what the goal is.

Do they want to stay in the house? Would they rent it from you? What’s your financial situation, meaning are you looking to profit from the house or the lease or what? What are your liquid resources? Borrowing capacity?

If they are in foreclosure, the only thing that matters is getting the loan paid current or paid off.

Good Morning TDD,
If your goal is to help parents, purchase sub2, yes you have to bring mortgage current. Use your money or borrow it. Have parents pay rent, sell house get your money back+some. Parents are renters any way help them into a place they can afford, rental , lease op, another sub2 for them.
This all could be a blessing in disguise. You make some money, rescue parents, they get a place they now can afford… Hurry Superman.