Zillow Advice: Mortgage Types - Land Contract http://www.zillow.com/advice-thread/Land-Contract/524193/ Zillow Advice | Zillow Real Estate Do you still require answers? ... http://www.zillow.com/advice-thread/Land-Contract/524193/ Do you still require answers? If so reach out to me via my profile. Sat, 08 Feb 2014 22:07:00 GMT http://www.zillow.com/advice-thread/Land-Contract/524193/ 2014-02-08T22:07:00Z Here are additional details:I ... http://www.zillow.com/advice-thread/Land-Contract/524193/ Here are additional details:<br/><br/>I have a 401K loan which I took to buy the home my brother occupies.&nbsp; He has gone through Foreclosure and Bankruptcy.<br/><br/>He's paying me back in the same amount I took out plus the interest I have to pay back into the 401K.<br/><br/>The payback period is 5 years.&nbsp; We're 16m into the payment schedule.<br/><br/>The part I realize I didn't mention is that there are two goals:&nbsp; (1)&nbsp; reduce the monthly PITI because he's having a tough time making ends meet and (2)&nbsp; because a mortgage at 30 years with such a low balance reduces the monthly payment in such a drastic way, we could take out equity to finish the basement.&nbsp; It's a 2BR home and he has 3 kids.&nbsp; They need another BR but can't afford to move to a 3BR home.&nbsp; This is our best financial option and I'm just trying to find out how to make it happen.<br/><br/>I spoke to a mortgage specialist today with a local big name bank and was told I might want to investigate having my brother write a Quit Claim Deed to add my name (and my husband's) to the Deed.&nbsp; I don't know how this works with the Title so I'll call a Title Agent tomorrow or maybe someone here knows?&nbsp; I don't even know if a Quit Claim Deed is possible between a LC provider (my husband and me) and person we have the LC with (my brother).&nbsp; We want to do everything on the up-and-up and will go through an attorney for any transaction we decide if we move forward with any option other than the 'do nothing' option so I'm looking for ideas here so I know what it is I should be talking to someone about.&nbsp; At the moment, I don't know what I don't know.&nbsp; The LC agreement was the first we've ever done.<br/><br/>The mortgage specialist said that a 30 year investment mortgage would be basically me re-financing on my credit.&nbsp; He ran a quick calculation scenario for me and the numbers are looking promising.<br/><br/>I was also told today that Bankruptcy affects a person's credit rating by approximately 4 years before they can consider re-financing but a Foreclosure is worse.&nbsp; The gentleman told me there was a 10 year scar so it would be virtually impossible for him to get a conventional loan without our help.<br/><br/>So my question really is what are our options from a finance standpoint?&nbsp; We need cash to fund adding a bedroom in the basement.&nbsp; We need to get the overall PITI to a manageable level. <br/><br/>The home was purchased at roughly 1/3 of its present market value.&nbsp; If I were to go with a super conservative market value, we still have about 50% equity in the home.&nbsp; If I go with the Zillow estimate then we only owe 25% of the market value which is plenty of equity to work with from a market value standpoint, but I'm looking to see what are our options.<br/><br/>Thanks in advance! Thu, 16 Jan 2014 02:30:00 GMT http://www.zillow.com/advice-thread/Land-Contract/524193/ 2014-01-16T02:30:00Z If you are the ones who have ... http://www.zillow.com/advice-thread/Land-Contract/524193/ If you are the ones who have a land contract I am assuming you purchased the home and your brother is the one who signed the land contract with you.&nbsp; Technically from what I am gathering you still own the title to your home and you agreed to sell it to your brother for a certain price after 5 years.&nbsp; It seems that his credit is too poor to obtain traditional financing on his own and you are trying to find a way to obtain a loan in your name?&nbsp; <br/><br/>I am not quite understanding what you are trying to accomplish if you could please elaborate or contact me with more information I would be more than glad to try and assist to the best of my ability. Wed, 15 Jan 2014 21:43:00 GMT http://www.zillow.com/advice-thread/Land-Contract/524193/ 2014-01-15T21:43:00Z Was the transaction recorded? ... http://www.zillow.com/advice-thread/Land-Contract/524193/ Was the transaction recorded? Are you doing wrap around financing where you still have a mortgage in your name? Who is on Title?&nbsp; Sun, 12 Jan 2014 21:19:00 GMT http://www.zillow.com/advice-thread/Land-Contract/524193/ 2014-01-12T21:19:00Z