When selling a house, can you roll your money into another mortgage that is not in your name w/out penalty?

Answer 1

It's your gain. Spend it as you see fit. But it's taxable to you. You can't call it a 1031 Exchange if you use the money to pay down a loan unless that buys you a portion of the property. If you already own it you can't pay down the loan at all tax free.

Answer 2

Not to be "Clintonesque", but it really depends on what you mean by "penalty".

Will Yahoo take away points? NO.

Will you pay taxes to the IRS? Possibly.