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Steve says last year, my wife and I bought a home from a family member and have been living in it ever since.

However, we didn't transfer the deed or title, refinance, or switch the mortgage to our names.

Technically, the house still belongs to him and his wife because we wanted to keep

their 3% mortgage rate instead of the 6% to 7% rate we were quoted. We paid $150,000 up front

when we made the deal, and we've been making the monthly mortgage payments since last year.

Recently, we've reconsidered the deal and want to legally transfer the house to our names.

The bank says they can't consider the $150K as a down payment because there's no contract.

They suggested changing the sale price to $150K instead.

Is this a bad idea for us?

If we sell in the future, will potential buyers be confused about the low purchase price compared to the house's

value? There's a lot going on here. A lot of mistakes have been made already.

Yeah. Steve, what you did was unbelievably stupid. This is dangerous. Really dumb and dangerous.

Okay.

Let's just pretend.

Let's pretend the couple you're buying this from had a car wreck.

And it was an accident.

But they get sued for $500,000, and they lose the lawsuit.

There's now a lien on the house that they own for $500,000. You just lost your $150K in that scenario. Oh, if the bank discovers you've done this that the mortgage is

with, they're going to call the loan 100%. You get to pay the whole stinking thing off in 30 days

or they're going to start foreclosure.

There's a due on sale clause in paragraph 17 in the deed,

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