Posted on: 18th Dec, 2008 09:00 pm
My wife and I are in the process of settling her mother's estate. We've lived in her house since 2001 - have paid the mortgage, insurance, and property taxes since Oct. 2006. Title to the property has been conveyed to my wife and her sister as joint tenants with right of survivorship. The proposed agreement gives us 5 years to either buy her 50% interest in the property (at a currently appraised value) or sell the property and divide the proceeds, less expenses. There is approximately 26 months (18K) left on the mortgage. The house is currently appraised at 250k. Our intent is to buy out her sister's interest. My question(s) are a) is there a way to include myself in this agreement in case of death or loss of physical or mental capacity with my wife and b) how would the buyout work? would it be best to pay off the existing mortgage, then take out a HELOC or buy her out sooner? Any help or direction would be greatly appreciated.
thanks,
francis
thanks,
francis
welcome ww,
yes, you can include your name in the new property deed that will drafted when your wife's sister transfers the property in your wife's name. both your wife's name and your name can be mentioned as grantees to the property.
you can first buy out the property from your wife's sister and then refinance the mortgage in your name and your wife's name or only in your name if your credit is good.
yes, you can include your name in the new property deed that will drafted when your wife's sister transfers the property in your wife's name. both your wife's name and your name can be mentioned as grantees to the property.
you can first buy out the property from your wife's sister and then refinance the mortgage in your name and your wife's name or only in your name if your credit is good.
Hi ww,
You need to buyout the sister's interest first. Then you'll have to add your name to the deed as joint tenant with right of survivorship. This will help you to get the entire ownership rights on property if in case your wife passes away.
Since the mortgage is yet to be paid off, you need to ask the lender if he'd approve a transfer of the property wherein your wife will buyout the sister's property. If there's no chance of a penalty due to such a transfer, then you can buy her out while making the mortgage payments. However, in such a case, the mortgage should be refinanced in the name of the would-be owners after the buyout.
Now, if the loan doc says you could face a penalty or the lender could call the loan due if there's any transfer of property, then you need to pay off the existing loan and then go for the buyout.
By the way, it seems that you wish to take out a Heloc. I feel it's better to take out the Heloc after you complete the buyout and have your wife's name and yours on the title.
Regards,
Jessica.
You need to buyout the sister's interest first. Then you'll have to add your name to the deed as joint tenant with right of survivorship. This will help you to get the entire ownership rights on property if in case your wife passes away.
Since the mortgage is yet to be paid off, you need to ask the lender if he'd approve a transfer of the property wherein your wife will buyout the sister's property. If there's no chance of a penalty due to such a transfer, then you can buy her out while making the mortgage payments. However, in such a case, the mortgage should be refinanced in the name of the would-be owners after the buyout.
Now, if the loan doc says you could face a penalty or the lender could call the loan due if there's any transfer of property, then you need to pay off the existing loan and then go for the buyout.
By the way, it seems that you wish to take out a Heloc. I feel it's better to take out the Heloc after you complete the buyout and have your wife's name and yours on the title.
Regards,
Jessica.
