Posted on: 14th Jan, 2008 02:37 pm
hi-my mother lives in texas. she has cancer, which is in remission. my brother and i are in the process of transfering all of her assests to our name..she lives in a condo which still has a mortage and still lives in...she wants to transfer the deed into our name. my brother and i don't want to refinance the home..because, the apr that my mother has it finance at the present time is much lower, than the present apr listed. we know that the mortage will still be in her name when we transfer the deed and she will continue to live there. do we seek out a ouickclaim deed, a gift deed, or what kind of deed?
thank you very much for the time in consideration in this matter.
god bless
wayne
thank you very much for the time in consideration in this matter.
god bless
wayne
Hi Wayne,
Welcome to the forums.
Since there is already a mortgage on the property, therefore, you can use a quitclaim deed for the transfer of property from your mother to you and your brother. However, an even better way would be creating a life estate – a kind estate planning by which your mother retains an interest in the property while you and your brother too get a part of the interest. At your mother's death, you and your brother will be getting the absolute ownership rights.
Now, there is a mortgage on the property, so before your mom can create a life estate, the lender needs to be informed. The lender won't object to such a thing because your mom retains her ownership rights. And, as far as making the payments are concerned, you can continue to do so with your brother, if required (I suppose your mom isn't able to pay and it's being done by you and your brother).
As for the APR, I shall suggest that you check the mortgage rates because a low APR doesn't always mean a low rate and viceversa. So, if the current rate is high, you may even think fo refinancing the loan in your name and getting tax benefits on mortgage interest if you itemize.
Take Care
Welcome to the forums.
Since there is already a mortgage on the property, therefore, you can use a quitclaim deed for the transfer of property from your mother to you and your brother. However, an even better way would be creating a life estate – a kind estate planning by which your mother retains an interest in the property while you and your brother too get a part of the interest. At your mother's death, you and your brother will be getting the absolute ownership rights.
Now, there is a mortgage on the property, so before your mom can create a life estate, the lender needs to be informed. The lender won't object to such a thing because your mom retains her ownership rights. And, as far as making the payments are concerned, you can continue to do so with your brother, if required (I suppose your mom isn't able to pay and it's being done by you and your brother).
As for the APR, I shall suggest that you check the mortgage rates because a low APR doesn't always mean a low rate and viceversa. So, if the current rate is high, you may even think fo refinancing the loan in your name and getting tax benefits on mortgage interest if you itemize.
Take Care
I would put the home in a living trust. The lender won't object, and you will become the "owner" of the house when your mom dies.
If you try and transfer the title, the mortgage company will try and refi you at a higher rate. In any event, you, too, will likely become a debtor on the mortgage, if you qualify.
If you try and transfer the title, the mortgage company will try and refi you at a higher rate. In any event, you, too, will likely become a debtor on the mortgage, if you qualify.
Yeah that's a good idea jheard. At least Wayne can avoid refinancing to get his name on the deed. The best thing about a living trust is that it helps one avoid the probate costs as in a Will and it cannot be easily challenged compared to that of a will.
Thanks
Thanks
Hi Wayne,
Quitclaim with a life estate will be a good option as Sara mentioned above. Your mother will remain the owner of the property as long as she lives and then both of you will obtain the ownership and you need not to refinance at the same time.
There was a discussion in this community regarding life estate. You can check this out- http://www.mortgagefit.com/know-how/ladybirddeed.html#lifeestate
Hope it will help you.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Quitclaim with a life estate will be a good option as Sara mentioned above. Your mother will remain the owner of the property as long as she lives and then both of you will obtain the ownership and you need not to refinance at the same time.
There was a discussion in this community regarding life estate. You can check this out- http://www.mortgagefit.com/know-how/ladybirddeed.html#lifeestate
Hope it will help you.
Feel free to ask if you have any further questions.
Best of luck,
Larry
I suggest that you and your brother are simply added to title with a Survivorship deed. In the event of death, the property will transfer to you and your brother without having to go through probate. At that time, you can then refinance the home into you or your brothers name.