Posted on: 08th May, 2010 09:44 am
Is there ever a reason, other than a divorce, that a husband would sign the jointly owned house over to his wife for $1? Through public records I saw a friend in NY signed his house over to his wife for $1 and 5 months later she resold it, making a profit of over $300,000. Then 2 months later my friend and his wife jointly closed on a house with her parents in NC. In the publicly recorded deeds, on the same day the closing papers were signed (Feb 2010), my friend immediately signed his rights to the newly acquired house over to his wife and his in-laws through a warranty deed. (It seems they started this purchase in Feb 2009 conditional upon sale of their respective homes.) Would there be any other reason for taking your name completely off your homes other than a divorce? Are there some tax breaks? Or possible bankruptcy protection? (I'd ask him myself but his NY phone is no longer active.)
Welcome ellcarr,
There can be various reasons why a husband wants to transfer the property to his wife. I'm not sure about the tax breaks. However, the property can be protected in case the husband files bankruptcy. This is because the property will not be considered as his asset once he transfers it to his wife.
There can be various reasons why a husband wants to transfer the property to his wife. I'm not sure about the tax breaks. However, the property can be protected in case the husband files bankruptcy. This is because the property will not be considered as his asset once he transfers it to his wife.
does the spouse that is being transferred the deed need to qualify for the loan?
hi lefty!
welcome to forums!
once a person is added to the property deed, the lender will want both the owners to refinance the mortgage in their names. in order to do so, the new owner will have to qualify for the mortgage.
feel free to ask if you've further queries.
sussane
welcome to forums!
once a person is added to the property deed, the lender will want both the owners to refinance the mortgage in their names. in order to do so, the new owner will have to qualify for the mortgage.
feel free to ask if you've further queries.
sussane
Hi Lefty,
Yes, the new owner needs to qualify for the mortgage re-finance. The lender will check the credit score, source of income and credit history of the person. The lender has its sole discretion to accept or reject the re-finance.
Yes, the new owner needs to qualify for the mortgage re-finance. The lender will check the credit score, source of income and credit history of the person. The lender has its sole discretion to accept or reject the re-finance.