Looking for help in New York on a subject to deal

I am in Florida so do not deal with NY nor know all the rules and laws for contacts, I knowing your closing are done much different then Florida as once I was going to buy properties in Buffalo but backed out,

So my friend wants to take over his moms payment son the house in Troy, NY (near Albany). She is 2 months behind and plans to move out. He lives in Florida and plans to take over $400 month mortgage and have a friend move in, pay at least half the mortgage and fix up the house (needs roughly 30K) so his friend can do all the work while living dirt cheap over time and my friend has a summer home. Mortgage is 40K and house worth around 80K when done should be in the 120-130K he says (not my estimates do not know area)

Okay so I was wondering if anyone can help with a title company up there or has the right contracts for NY. Probably just do it subject to, QCD house over from mom to him and then lease needed when his friend moves in stating he will do repairs. etc for lower rent. Something creative, he doesnt want guy living there cheap and not doing anything.

He plans to catch mortgage up by Feb 10th so it will be 3 payments made as he is doing taxes and using that money…

Also he would like to get mortgage in his name down road. He is not working now, just lost his job last week (outsourcing to India is so nice). Anyone know about financing these days once back to work. He has over 700 FICO. He knows can not do it now, but I remember back in days, if he was doing a lease option for 24 months it be considered a refi when buying it. Still like that?? Part of the type of contract we do here has to help benifit him getting home loan down road and living in Florida not NY. I know banking changes like a babies diaper these days though.

best advice out there???

From the limited info you have given, I would have the mom sign a quit claim deed over to a trust and have your friend be the trustee giving him control of property without sending red flags to the mortgage company. Why would he want to put his good credit on the line if there is already a mortgage he can take over! Keep the existing financing and use his credit, if needed, to obtain the cash to clean the place up, and then sell it for profit and pay off loan.

The mortgage companies are way too inconsistant to rely upon them for a refinance. Wait for an ‘owner occupant’ buyer to obtain financing at a retail price.

You will also want to get a ‘specific power of attorney’ form signed by the mom/owner so that when the property does resell, your friend can sign off on the documents.

Hope this helps.

R.E. Investor/Mentor