Posted on: 15th Mar, 2009 07:42 pm
my situation is very complicating. my parents moved out of state and was unsuccessful selling their home. they decided to quit claim the deed to me in 2006. the mortgage, i've been paying for since but is under my parents name still. i've been shopping around with local area banks about what my options are. most of the banks say that it would be considered as a refinance to put it in my name. only one bank said i could possibly do it as a purchase through gift of equity. i have never purchased a home...but since the deed is under my name already...could this be possible to structure this as a purchase and not refinance? my parents do not want anything from the house...so i owe them nothing. so would i be consider as a 1st time home buyer? i just don't know what is right and am very confused. if possible, i would like to have it structured as a purchase. if this is possible, are there any draw backs or tax consequences?
hi guest,
as the property deed is already in your name, i don't think you will be able to purchase the property again from your parents. moreover, as the deed is in your name, you will not be considered as a first time home buyer. in order to transfer the mortgage in your name, you will have to refinance the mortgage. you can speak to the lenders about novation which is also a way to transfer the mortgage. however, lenders prefer refinancing over novation.
thanks
as the property deed is already in your name, i don't think you will be able to purchase the property again from your parents. moreover, as the deed is in your name, you will not be considered as a first time home buyer. in order to transfer the mortgage in your name, you will have to refinance the mortgage. you can speak to the lenders about novation which is also a way to transfer the mortgage. however, lenders prefer refinancing over novation.
thanks