Posted on: 24th Jul, 2008 01:28 pm
Hi.
Before my divorce was settled, my mother purchased a house for me and my daughter to live in. I gave her $90,000 and she put in $130,000 ( a early inheritance gift) totaling $220 on a house for $300,000. She got a 6.75% interest rate. My divorce is final now and I want to either purchase the house from her outright (whole new closing, etc.) or should I simply add my name to the mortgage/title and assume payments. She is 74 so I will most likely outlive her...but what would happen in the event of my death. Could she then sign it over to my two adult children?
Thanks for your help.
Beth
Before my divorce was settled, my mother purchased a house for me and my daughter to live in. I gave her $90,000 and she put in $130,000 ( a early inheritance gift) totaling $220 on a house for $300,000. She got a 6.75% interest rate. My divorce is final now and I want to either purchase the house from her outright (whole new closing, etc.) or should I simply add my name to the mortgage/title and assume payments. She is 74 so I will most likely outlive her...but what would happen in the event of my death. Could she then sign it over to my two adult children?
Thanks for your help.
Beth
I would recommend doing a gift of equity purchase transaction.
This will allow you to buy the house from her but you can use the quity in the home as downpayment and to cover your closing costs.
If you simply add yourself to title and something were to happen to your mother you would have to deal with probate issues possibly. It is simpler to refinance now since you are the one that will be reponsible for the property anyway.
This will allow you to buy the house from her but you can use the quity in the home as downpayment and to cover your closing costs.
If you simply add yourself to title and something were to happen to your mother you would have to deal with probate issues possibly. It is simpler to refinance now since you are the one that will be reponsible for the property anyway.
