Posted on: 01st Aug, 2008 08:17 am
Hello Joshua,my wife and I live in Calif. she is 65 and I am 67,we are both on SS.We own our home and are making monthly interest payments.However it takes all that we get and more.Can we quitclaim 1/2 interest in our home to our son so that he can pay 1/2 the monthly payment? He would like to be able to use the interest as a write off. Thanks...Jerry
Hello Bigjer,
It's considerate & generous of your son but please use caution. Are you going to refinance so that you son's name shows on the loan as one of the borrowers? Is his name going to show on the deed as having partial interest (any change in title could cause the loan to become due & payable)?
I suggest you consult a tax advisor to be sure your son would be able to claim the interest write off on his taxes before any action is taken.
Since you & your wife are both over 62 you may want to check into a reverse mortgage & the advantages it may hold for you. I am attaching a link to the HUD site that could give you an overview http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm
You might also find this attachment helpful.
It's considerate & generous of your son but please use caution. Are you going to refinance so that you son's name shows on the loan as one of the borrowers? Is his name going to show on the deed as having partial interest (any change in title could cause the loan to become due & payable)?
I suggest you consult a tax advisor to be sure your son would be able to claim the interest write off on his taxes before any action is taken.
Since you & your wife are both over 62 you may want to check into a reverse mortgage & the advantages it may hold for you. I am attaching a link to the HUD site that could give you an overview http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm
You might also find this attachment helpful.
Thank you Lynnette,we are looking into as many ideas as we can.
Hi Bigjer,
Welcome to our community forums.
I can understand your situation. But the fact remains that your son won't be able to write off taxes if he's not on the loan. Moreover, as Lynette said, a transfer of property while in mortgage can lead to problems with your lender. Just check the loan doc and find out if there's a due-on-sale clause mentioned there. If your mortgage has such a clause, chances are that the lender may call the loan due and fully payable upon any transfer of property.
Regards,
Jessica
Welcome to our community forums.
I can understand your situation. But the fact remains that your son won't be able to write off taxes if he's not on the loan. Moreover, as Lynette said, a transfer of property while in mortgage can lead to problems with your lender. Just check the loan doc and find out if there's a due-on-sale clause mentioned there. If your mortgage has such a clause, chances are that the lender may call the loan due and fully payable upon any transfer of property.
Regards,
Jessica
