Posted on: 22nd Oct, 2010 12:14 pm
Hi, My parents are elderly and my Dad has been in poor health. I moved in with them to help out. They recieved a modification on their home recently. Because they are on a fixed income their tax accountant said that they no longer need to file income tax. They do have interest on their home and was wondering about putting me on the deed so I can claim it for my taxes. Is this possible if they have a modification? Would the bank have a problem with this? One of the reason they got the modification was because we claimed my income along with my parents. Before we do anything I would like to be sure.
Debbie G.
Debbie G.
Debbie, as a general rule, the adding of your name to title would cause the lender to request payment in full of their loan. That's because the transfer would trigger the "due on sale" clause in the mortgage contract.
Of course, many lenders don't become aware of such transfers because nobody tells them and they don't read the local real estate transactions regularly.
Of course, many lenders don't become aware of such transfers because nobody tells them and they don't read the local real estate transactions regularly.