Posted on: 26th Jan, 2008 03:17 pm
My husband and I lost our house a few years ago. My father bought us a new home which has a mortgage. We have been paying the mortgage directly to him each month for the last 4 years. My mother passed away and when that happend my father went to an attorney and had his will done along with making sure my brother and I get his home and that the home my husband and I live in goes to me. The taxes on our home are very high because the city has it listed as a rental because my father already owns his home in the same city. I was told that if we get a quick claim deed which the attorney's office has done and I file it with the city it will drop my property taxes down thus lowering my house payment (taxes are included in the mortgage). First off I would like to know: How do I go about doing this with the city and if we do do this will there be any consequences? 2nd, what about the mortage interest? Will my husband and I be able to claim that? If not, the current mortage company still lists my mothers name on it as my dad has never sent them her death certificate. Would my dad be able to add my name to the mortgage so that I can claim the interest on my taxes? Anyone who can give me some advise I would greatly appreciate it. We live in the state of Michigan. Thank you.
Your father cannot transfer ownership to you but can add you to the title of the home. He needs to stay on title since he is on the mortgage. If he were to be removed, then the mortgage lender can call the loan due and it could create a lot of problems. So again, just add yourself to the deed. I would also suggest a surviorship deed and then that way the home is transfered to you without having to go through probate.
I have never heard of taxes going down due to it being investment property but I suppose every county is different. I would call the county tax department and confirm this is the case. They should still lower it if you are on the deed also and live in the home.
I have never heard of taxes going down due to it being investment property but I suppose every county is different. I would call the county tax department and confirm this is the case. They should still lower it if you are on the deed also and live in the home.
Hi sueastolfi,
The home that your father has bought for you will be yours after your father passes away as per the Will . And, your father's home will be yours along with that of your brother. However, both these transfers will be after he passes away and that is through the Will, right?
"I was told that if we get a quick claim deed which the attorney's office has done and I file it with the city it will drop my property taxes down thus lowering my house payment"
Which house are you talking about here – is it your father's home?
The home that your father has bought for you will be yours after your father passes away as per the Will . And, your father's home will be yours along with that of your brother. However, both these transfers will be after he passes away and that is through the Will, right?
"I was told that if we get a quick claim deed which the attorney's office has done and I file it with the city it will drop my property taxes down thus lowering my house payment"
Which house are you talking about here – is it your father's home?
hi sueastolf,
"what about the mortage interest? will my husband and i be able to claim that?"
you (and your husband) can deduct the interest from your taxes provided both of you own the property and both of you have your names on the loan. for that, you need to refinance the loan in your name. at the same time, you need to go by the itemized deduction process and not the standard one.
i suppose you are asking for deductions on your father's home. this is not possible as long as you are not on the loan. also, if your father hasn't submitted the death certificate, then he will not be able to give you and your brother the respective shares of interest.
first of all, your father has to get the house in his name and this can be done by filing an affidavit if heirship at the county recorder's office. after that he can transfer it to both of you either through a deed or by will , if he wants it you to get it after his death.
take care
"what about the mortage interest? will my husband and i be able to claim that?"
you (and your husband) can deduct the interest from your taxes provided both of you own the property and both of you have your names on the loan. for that, you need to refinance the loan in your name. at the same time, you need to go by the itemized deduction process and not the standard one.
i suppose you are asking for deductions on your father's home. this is not possible as long as you are not on the loan. also, if your father hasn't submitted the death certificate, then he will not be able to give you and your brother the respective shares of interest.
first of all, your father has to get the house in his name and this can be done by filing an affidavit if heirship at the county recorder's office. after that he can transfer it to both of you either through a deed or by will , if he wants it you to get it after his death.
take care