My question involves real estate located in the State of: Ohio
This is a little convoluted, so please read through:
I inherited my mother's house this past year. The title is now in my name. I was unable to get refinanced because of my credit. I have tried 3 times to get a mortgage to no avail - all 3 attempts we in the early part of 2008. My credit has since become much worse.
So, the title is in my name. The mortgage is in my mother's name.
I could not make payments on the mortgage.
I found a buyer that was willing to make payments on the mortgage and pay a direct sum to myself. The buyer is a friend, and we are both willing to sign/do/create whatever documents or actions are needed.
The buyer (friend) will not likely get approved for another mortgage in this market, even though the buyer has had good credit and already owns a home (He 'bought' my home to take care of one of his family members. His family member is now living in the home).
We have a notorized and signed quit claim deed from April of 2008, but we did not file it yet.
I am now in credit card debt and have creditors beginning to come after me.
1) *Ideal scenario question* Given all the drastic changes in the economy, and some of the changes in mortgage practices - is there any hope that I could now get the mortgage in my name and pay off some of my credit card debt (about $20k equity in the home), even though my credit score is now low (title is currently still in my name)?
2) Should we file the Quit Claim Deed to protect the 'buyer' from any possibility of my creditors placing claims on the property?
3) If we file the Quite Claim Deed, what should we list as the amount of compensation? $10? I have searched and seached and cannot find out what the tax implications are in this scenario. We, (the buyer and I) are seeking to pay the least amount of taxes and have the fewest headaches.
Any help or suggestions or even links to information would be so very appreciated.
I feel terrible about the financial situation I am in, and want to do everything I can to help and protect the buyer (friend) in this situation. They have gone above and beyond to help me.