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rent to own contract with relative?

i have a rent to own contract with a relative do i need to put it in writing or is there a cheaper way as all i am doing is paying off the mortgage as his interest rate is far lower than i could possible get i just want legal title to the house so if he would get in trouble someone could not take the house from us. I have no trouble with my nephew but he is getting behind on bills and i am afraid a bill collector will put a lien on the house is there a quick deed on general contract i could have us both sides sign so another party could take control and the title would be in my name as soon as mortagage is paid off

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Contracts should always be in writing, for the protection of both parties. It doesn't need to be anything fancy; consult your local librarian for a sample contract.
how much is left owing on the house? I would try to get your name added on the deed and all then have your nephew sign a quit claim . Im just not sure how o get your name on the paperwork,... but i know in the event of a co signer they can do that...so they arent on the deed, maybe it can work for you
Never do business with friends or relatives. Since you're already involved, do your best to resolve it amicably but always protect yourself. Everyone will understand that you looked out for your best interests.
Listen to me carefully. I used to work for a mortgage company and saw a lot of people get into trouble this way. Disclaimer: I am not an attorney. Do not consider this legal advice. If you are the mortgagor: The mortgage company has a contract with the person on the mortgage note ONLY. They don't care who pays it, but they will be trying to collect from the person whose name is on the note. If you are letting someone else pay it, and he stops paying it, YOU are legally responsible for the debt. If you sign a deed transferring ANY or ALL interest in the property to someone else, it WILL NOT make them responsible for the debt to the bank. Defaulting on the loan will ruin your credit, NOT his. You must read your contract carefully. If he is the mortgagor: If the mortgage is in HIS name, and he is subletting to you, he may already be in violation of his contract. Most mortgages have a clause that the mortgagor cannot sublet to a tenant. If they do, the bank can call the note. That means the entire balance will be due. I strongly recommend that you consult an attorney with experience in real estate law before you do anything.
Ugh, this is not a good situation for you to be in. As long as his name is on the original mortgage, he still has legal rights to the house, and his debts can be placed as liens against the home. You actually have NO legal right to the property. Most bill collectors (auto loans, credit cards, etc) dont use property liens. . . but it's certainly happened. I would have him add you to the home using a quit claim deed, and get the promisory note (which is what you're essentialy going to need since this is like a loan) recorded. You may be able to use a deed of trust as well, but not sure that this would actually benefit you at all-- generally its in case YOU default it has a mutual third party handle any issues. Get your credit score up as quickly as possible and get him off the house.. . if you agree on a price now and the market increases just a bit, so the loan is less than full value, it would be easier to get a loan, and even if the rate is higher, I'd do it as soon as you possibly can. You're running a serious risk right now as the house is essentialy his to lose.
The immediate action that you need to take is a Quit Claim deed and have your nephew move off the mortgage. If you sense that he is behind on his bills then you should not wait till the creditors put a lien against the property. Or what you could do is buy over the mortgage from your nephew at the current rates and prevent your credit form being ruined. I am a mortgage broker by profession, let me know if you need any help in purchasing that property and I can get you the best deal in the market...that's a guarantee. Call 713-429-4304 ext-2238 or frank@profolioloan.com