Posted on: 20th Nov, 2012 11:11 pm
Hello there… Mom signed away her house to her son and daughter as joint tenants 3 years before she passed away. They are now not getting along. Sister wants to sell and the brother says that he will not sell in this low real estate market. Both can not afford to buy the other out. Now the brother has an idea to get a reverse mortgage to pay off the sister. He is 62 and she is 65. Would the sister have to quit claim her share to him? If so, does that mean that the brother would have 100% ownership of the house before any paperwork is submitted? And will he be able to get a reverse mortgage later on?
Hi Penny,
It is not mandatory for the sister to transfer the property to the brother to get a reverse mortgage. As both are 62 and more years old, both of them will qualify for a reverse mortgage. However, as the sister will be paid off for her share of the property, it will be better if she transfers the property to her brother.
Thanks,
Jerry
It is not mandatory for the sister to transfer the property to the brother to get a reverse mortgage. As both are 62 and more years old, both of them will qualify for a reverse mortgage. However, as the sister will be paid off for her share of the property, it will be better if she transfers the property to her brother.
Thanks,
Jerry
Hi Penny!
Welcome to forums!
If the brother meets all the required criteria of the reverse mortgage lender, then he will be able to get such a loan.
Wish you a happy thanksgiving.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the brother meets all the required criteria of the reverse mortgage lender, then he will be able to get such a loan.
Wish you a happy thanksgiving.
Feel free to ask if you've further queries.
Sussane
Reverse mortgage being possible at this age so it would be better to take It and resolve the settlement issue. After this the sister should not ask for any more share in the house whenever it is sold, also a signed documentation should be prepared regarding it. Acquiring a mortgage how much later should be specified as change in policies do occur with the passage of time.
The proper way to do it is via Escrow. Tell your Loan Officer the situation, and provide 50% of the the value of the property to the Sister when the loan funds, and remove her from Title at the same time. The Son will be left with the property, with Title 100% in his name, and without a monthly mortgage payment. Let me know if you have questions.
As a side note, both will need to attend the counseling session together, because they're both currently on Title. And they'll need enough equity to pay the Sister.
As a side note, both will need to attend the counseling session together, because they're both currently on Title. And they'll need enough equity to pay the Sister.
