My mom who is in her 70's lives with me and my husband. I quit my job to care for my father as he was passing, and got into some finacial troubles. We were wondering about teh leagal aspect would be if we would sell the house to mom to get the lower intrest rate and pay of some bills. Mind you ours is shot due the the finacial troubles, so plain refinacining is out. We will be making all th epayments, but in th event of her death can she deed it back to us? I do have one brother, and dont want to risk losing it all. Any leagal advice would be greatly appreciated.
2007-06-18 07:18:47 · 8 answers · asked by gonzomars 2 in Business & Finance ➔ Renting & Real Estate
Instead of Answers - I would be speaking with an estate lawyer and tax consultant
2007-06-18 07:22:17 · answer #1 · answered by Mike Frisbee 6 · 2⤊ 1⤋
You can't. It's called fraud. I'm assuming your mother gets some type of state assistances. Do you know that many HMO medical plans look to get reimburrsed after the patients death? Meaning...she may "Will" you the house, but her estate would be brought into question with any money owed out. Which would mean that the house would be claimed and sold...unless you could afford the debt.
Another aspect is...She leaves the house to you. Being the fact she is in her 70's, your brother could say that she wasn't of the right mind and contest it.
2007-06-18 14:25:15 · answer #2 · answered by smile2besweet 1 · 0⤊ 0⤋
The easiest way out is sometimes not the best way to solve a problem.
There are many problems you and all the estate planners or lawyers can not solve in the world. That peace of mind for your aging mother.
If something go array in this proposed financial structure and you are not able to make the mortgage payments as it appears as if you are having problems now.
How will your mother come up with the down payment, proof that she has adeqate income to make the monthly mortgage payment. Seasoning of funds for a least 3 months of mortgage payments in the bank. Signing of the application and loan docs.
If the property goes into foreclosure your mother will be getting telephone calls, all sort of mail addressed directly to her. You are not allowed to open her mail, even if you want. She will find out the financial difficulties she is in caused by your plan. Now she will not be able to sleep comfortably and will be worried talking with all these various lawyers, investors, loan officers, real estate agents etc.
You should cut down on some of the things you have established as must haves and cut them out. Get yourself another job, tough it out for another 6-12 months, do things to improve your credit score. Evenif you make the mortgage payment on time for one full year, you can refinance with most mortgage brokers/lenders with what is known as a mortgage only loan.
I hope that this has been of some use to you, good luck.
"FIGHT ON"
2007-06-18 15:23:07 · answer #3 · answered by loanmasterone 7 · 0⤊ 0⤋
Well, legally if that happens he would be entitlied to 1/2 of the house if you and him are the only living children. But a will might help you avoid that in the long run.
Consider meeting with an attorney or have a written agreement between you, your mom and your brother to avoid any future problems.
There may be a better option for you!
Good Luck!
2007-06-18 14:23:37 · answer #4 · answered by Miss Know It All 6 · 0⤊ 0⤋
You mother can get a loan in her 70's depending whether her income and credit history are adequate.
What troubles me is that you have made some strange comments in your narrative, ..."in the event of her death can she deed it back to us?" She could put the home in her will, but she can't quick claim deed the property unless she is alive. (Your brother is waiting for your bad decisions)
For her protection and hers, you need to see an attorney who practices in family law. They will educate you in establishing a trust and giving you a brief financial education.
The most obvious solution would be to get another job to solve your immediate and long term financial problems. That would eliminate the need for your mother to buy the house.
Another option would be to simply borrow money from her and pay it back to her monthly rather than go through the loan process with a bank. That would bypass future problems if she becomes ill enough to need nursing home care.
2007-06-18 14:44:01 · answer #5 · answered by Ginger 6 · 0⤊ 0⤋
Actually, you will find that if your mom needs medicare, the fact that she owns a home may cause her to be ineligible. I wouldn't suggest doing what you plan. The cost of providing long term care and/or nursing or hospitalization could wipe out much of the value of the home. If nothing happens and she dies WITH a will leaving the house to you, there may be tax implications. This sounds like a big mistake to me, but if you REALLY intend to do it, seek professional help from a lawyer who specializes in issues for the elderly and be candid with him.
2007-06-18 14:24:14 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Obvious question? How is your 70 year old mother going to qualify for a mortgage? AS far as getting it back, you'd pretty much have to have it done by action of will.
2007-06-18 14:22:48 · answer #7 · answered by wizjp 7 · 2⤊ 0⤋
better yet who is going to protect her, make your own way in life let your mom alone and enjoy the rest of her life.
2007-06-18 14:22:04 · answer #8 · answered by sidekick 6 · 1⤊ 0⤋