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Taking Over House

Posted on: 12th Nov, 2009 11:19 pm
I live in, and have paid the mortgage for 16 years in a house that is under my in laws names.
This was done for tax reasons. The equity is ours (wife and myself)
We were in the process of refining with a cash out of 100,000. $60,000 remains on the mortgage under their names
My father in law has passed away in the middle of the process. My mother in law now can not qualify by her self for the refin. Can my wife and I have our names put on the deed and then refin with her?
Another option is to buy the house from her for $160,000,she would give us the remaining cash from sale. The problem with this plan is we do not have enough for any down payment.
All parties have great credit scores.
What is the best way to go?
Thank you
in my opinion, it would be a better idea to add yourself to the property deed and then refinance the loan. however, you should have equity in the property to refinance the loan. thus, you would become the owners of the property and would also be liable for the mortgage.
Posted on: 13th Nov, 2009 01:17 am
Thanks for the quick response.
I am not sure what you mean by this statemen"However, you should have equity in the property to refinance the loan."t.
The house is actually mine but the mortgage is in the name of my in laws.
How would I show the equity to be mine? Thank you
Posted on: 13th Nov, 2009 09:50 am
>>Can my wife and I have our names put on the deed and then refin with her?

No, you'll end up with Title seasoning issues with a new loan. You don't need to be on Title before the refinance if you can prove to the Underwriter you've been making the payments.

>>What is the best way to go?

Another option is for your Mother-in-law to get a Reverse Mortgage because she won't have any problem qualifying by herself, and pay you from the proceeds. It'll also eliminate the monthly mortgage payment.
Posted on: 14th Nov, 2009 07:45 am
Where do I stand if my mother in law dies? How does the house become mine in this scenario?
Posted on: 15th Nov, 2009 10:36 pm
Your mother-in-law will have to transfer the property in your name. Then you would be able to claim the equity as your own. After your mother-in-law's death, you will have to transfer the property in your name (if it is not) by filing an affidavit of heirship at the county recorder's office. If there is a will, then it needs to be probated first. After you get the property, you'll have to refinance the mortgage in your name.
Posted on: 16th Nov, 2009 02:02 am
Hi,

This is a very good brief as, this will no doubt work for me too as, my friend is going through same situation and he was finding difficulty here and finally he got a solution here.


Thanks!
Posted on: 20th Nov, 2009 03:47 am
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