Posted on: 18th Jul, 2007 11:57 am
My parents bought a second home in Coachella and are currently renting it but still need to pay the difference to make up the mortgage payment. They would like my husband and I to share the title and help pay that difference a month and when they do decide to sell it we can split any profits. Will a quitclaim deed work for us? Do we need a real estate attorney?
quit claim deed will help you share the title but won't transfer the mortgage in your name. it will remain in your parent's name. and at the time title ownership changes, lender might require the mortgage to be refinanced.
you need to inquire with the lender on whether he will allow a change in title ownership without the need for a refinance.
miller
you need to inquire with the lender on whether he will allow a change in title ownership without the need for a refinance.
miller
thank you...my mom did speak with our lender and they do require the mortgage to be refinanced. My parents and I don't think its a good Idea to refinance now since the property is already up in value and the payments will be much higher. Are there any other options? or do I just keep it in the family and help my parents with current mortgage and wait for them to sell in a couple of years.
Hi Vanessa,
Welcome to Mortgagefit discussion board.
Yes I also agree that refinance would not be a good idea to go ahead with if the rates are going to be higher than what they are for the present mortgage.
What you can do is continue to help your parents with the payments and when they decide to sell it get a share back out of the sale proceeds.
Thanks
Blue
Welcome to Mortgagefit discussion board.
Yes I also agree that refinance would not be a good idea to go ahead with if the rates are going to be higher than what they are for the present mortgage.
What you can do is continue to help your parents with the payments and when they decide to sell it get a share back out of the sale proceeds.
Thanks
Blue
we have a small first and second mortgage on our home, but would like to sign the ownership over to our children, (quit claim?) to avoid losing our home if we require nursing home care, etc. we are in our early sixties and healthy so far. will the mortgage company allow this? what do you suggest? thank you.
Yes you can quit claim the home to children but lender would require the mortgage to be refinanced in their name.
If they can qualify for refinance then there is no problem in transferring title in their name.
Miller
If they can qualify for refinance then there is no problem in transferring title in their name.
Miller
Hi Mary,
A quitclaim deed will no doubt help you to transfer the property ownership to your children. But as there are two loans against the house, the mortgage company may ask either to pay them off or require your children to refinance and replace with a new loan.
In future, if you go to nursing home and do not able to pay the bills, the nursing home may place a lien against your other properties.
A quitclaim deed will no doubt help you to transfer the property ownership to your children. But as there are two loans against the house, the mortgage company may ask either to pay them off or require your children to refinance and replace with a new loan.
In future, if you go to nursing home and do not able to pay the bills, the nursing home may place a lien against your other properties.