Legal Question in Real Estate Law in Illinois

home purchase

I am looking to purchase a home and I have bad credit. One way of doing this I have thought of was to do it through a Quit claim deed if I can get a seller to do it. Will I be able to process the Quit deed, Refinance (using the house as collateral) the house for the asking price or the Market value and then turn the loan money over to the seller and make the mortagage payments as if I owned the house outright and just refinanced?


Asked on 2/23/07, 1:58 pm

2 Answers from Attorneys
Mary McDonagh McDonagh-Faherty Law Offices

Re: home purchase

Highly unlikely that a seller will agree or that a lender will give you money even if you own the home at that point. Owning a home does not change your credit rating immediately.

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Answered on 2/23/07, 2:09 pm
Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Re: home purchase

You may be able to do this, depending on the underwriter's requirements and whether you can find a seller who does not have a mortgage holder. Also, with a bad credit rating, assuming that you manage to get past the underwriter, your interest rate would probably be quite high.

You are more likely to talk that seller into a contract purchase, use your timely payments to build some equity and a better credit record and then apply for a mortgage to pay off the contract.

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Answered on 2/23/07, 10:14 pm


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