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Home >> Lending >> Home Mortgage
Buy Farm without a New Mortgage?
My wife and I want to buy my grandmother's farm. She owes about 70k and its worth 180k. The problem is, our credit is horrible, late payments, debt to income ratio, etc. We are selling our house and the payments are about double of what the farm payments will be. We can afford the farm and still make all our other payments on time. What is the best way to get the farm without getting a new mortgage.
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 If your intent is to own the farm, then you need the deed signed over to you and your spouse. The lender with a lien won't let that happen. They want to be paid, if the ownership is to transfer.
At best, with your credit the way you describe it, you can see if the lender will allow you to sign on the loan with your grandmother and be placed on the deed. Estate-wise, this means the property and the debt will be yours when your grandmother passes away. That may or may not be in her plans, and the current lien holder can refuse. You won't know until you ask your grandmother and the lender.
Published on BankingQuestions.com 2/02/10
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