Posted on: 18th Apr, 2006 11:11 am
my mom and dad bought property for my brother because he has irs troubles. there is a mortage at about 33% of the value of the property. there is also a lease to own agreement and he is supposed to make the payments to the bank. however, he tends to miss payments. also, my mom and dad are in assisted living now and are running out of money. what would happen if my mom and dad did a quit claim deed over to him? i think this is a bad idea, but other siblings think it might be okay. what do you think?
hi jen,
i don't think it's a good idea. a quit claim deed will transfer the interests from your parents to your brother. but the mortgage will still be in their name.
as you are telling he is already delinquent with his payments, so the liability of the mortgage will be on them only.
if they wish to quit claim the property, then it's better to refinance the mortgage to him along with the house transfer.
mat be it's better if you talk to the lender on the matter.
blue
i don't think it's a good idea. a quit claim deed will transfer the interests from your parents to your brother. but the mortgage will still be in their name.
as you are telling he is already delinquent with his payments, so the liability of the mortgage will be on them only.
if they wish to quit claim the property, then it's better to refinance the mortgage to him along with the house transfer.
mat be it's better if you talk to the lender on the matter.
blue
Jen,
I think it won't be wise to quit claim the property to your brother under the current situation although it's your family matter.
Now, you are telling that he has a tendency to miss out on his payments. If your parents are transferring the ownership interests to him then they won't have further rights in the property.
But the mortgage will continue to be in their name. This can make them unsecured at their old age. As Blue suggested, it's better refinancing the mortgage in his name, along with transferring the property if you still wishing to.
But I doubt whether that will help your parents with their money draining out as you mentioned. Have you thought of reverse mortgage for your parents? There are some minimum requirements to be fulfilled to get the mortgage meant for senior homeowners. I think you can consider that for your parents.
Talk to your family members and think several times before taking a decision on the quit claim.
James
I think it won't be wise to quit claim the property to your brother under the current situation although it's your family matter.
Now, you are telling that he has a tendency to miss out on his payments. If your parents are transferring the ownership interests to him then they won't have further rights in the property.
But the mortgage will continue to be in their name. This can make them unsecured at their old age. As Blue suggested, it's better refinancing the mortgage in his name, along with transferring the property if you still wishing to.
But I doubt whether that will help your parents with their money draining out as you mentioned. Have you thought of reverse mortgage for your parents? There are some minimum requirements to be fulfilled to get the mortgage meant for senior homeowners. I think you can consider that for your parents.
Talk to your family members and think several times before taking a decision on the quit claim.
James