Posted on: 06th Apr, 2010 01:31 pm
I own my house outright (no mortgage to pay), but I have bad credit since my husband and youngest son died and was declined for a LOC equity loan to pay off all my debts, which would reduce my monthly payments by 75%... I could literally live on my SS check if my debts were paid off. Is it feasible to transfer ownership of my home to my remaining son (a 39 year old professional), so that he would be able to qualify for a LOC equity loan to repair my credit and make it easier for me to get by?
The "true value" cost of the home (how it is taxed) fell to $124,050. last year. My total debts are less than $10K. I have medical issues that might make it difficult for me to continue working, so I am trying to find a way that I can live off my SS alone id necessary. Is this an insane idea?
The "true value" cost of the home (how it is taxed) fell to $124,050. last year. My total debts are less than $10K. I have medical issues that might make it difficult for me to continue working, so I am trying to find a way that I can live off my SS alone id necessary. Is this an insane idea?
Hi worthingtonfox,
Rather than transferring the property to your son and taking a mortgage on it, you can go for a personal loan of 10k and pay off your debts. You can also contact your creditors and negotiate with them so that they give you an affordable payment plan to pay off the debts.
In case, if none of the plans work, then you can transfer the property to your son and he can take a loan on it and help you in paying off the debt. However, the HELOC will be in his name and he would be responsible for paying it off on time.
Thanks
Rather than transferring the property to your son and taking a mortgage on it, you can go for a personal loan of 10k and pay off your debts. You can also contact your creditors and negotiate with them so that they give you an affordable payment plan to pay off the debts.
In case, if none of the plans work, then you can transfer the property to your son and he can take a loan on it and help you in paying off the debt. However, the HELOC will be in his name and he would be responsible for paying it off on time.
Thanks