What is the easiest way to sell one of my house to my daughter without paying Realtors ?

Question

1.Can I just go to escrow company to sell one of my house to my married daughter ?
2. I have about $80,000 loan left on that house, can I have her take over that loan too?
3.If the house valued about $700,000, can I sell to her at around $555,000 to save her future property tax?

Answer 1

You may transfer the property to your daughter simply by going to a title company that has as escrow department. This will transfer the property to your daughter.

If you are gonna add a second mortgage what ever that amount is you should tell this to the escrow closing agent. They will make up a note and deed of trust in your favor. You simply have to provide the terms, interest rates and any due date.

If you are gonna have her pay for the first and 2nd then she would make the first and second mortgage to you. You would then pay the first as you have in the past, keeping the remainding funds for yourself.

During this transaction you should also have her name placed on the fire insurance policy and she will now be responsible for the county property taxes.

You can not transfer the mortgage to your daughter, she must qualify to assume your existing mortgage or she must get a new mortgage. This new mortgage will constitute a sale.

You may leave the mortgage as it is and let her make the mortgage payments. This is done often, but you have to make sure that she pays the mortgage on time. She and her husband must make the monthly payment using their personal checking account. (If you are doing a second this does not apply)

After a year of her paying the mortgage with her personal checking account most lenders will accept this now as a refinance. She should have her canceled checks or monthly bank statements to prove this.

If your mortgage company somewhere down the line find out and make a fuss about her making he payments you will be required to refinance at that time.

You should also check with your tax consultant about any tax consequences that might arise from this transfer.

You will have lots of others that will tell you this is not a good way to do this. I understand this, but smart family members do this all the time and the value of the house,nor houses in the neighborhood changes because most family members sell houses to children at a reduced sales price.

Now if you are trying to get the maximum value out of this sale or saving them a couple hundrd thousand dollars, then she will be required to come up with the down payment of between 10%-20%, go through the normal mortgage broker with credit check, proof of income, tax returns, pay stubs,proof or funds in a bank and all the other things necessary to qualify for a loan.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

!. Yes except 2. interferes a bit,the lender has to agree because they still hold an interest in the property. They may even ask you to still sign depending on their income. it has a lot of equity left so perhaps a gift of the equity and get your tax person to look at the impact on your taxes before you make this choice. There may be a better way. In trust? I would re-read the loan papers on this property and see what it says about wrap-around loans or any for that matter. Assignment assumptions etc. 3. If only we could do this. The country tax appraisers are still smart enough to figure this one out and will probably come back and appraise it higher next year. If the rest of the community isn't going down and in that price range it doesn't happen often, they aren't going to buy into that ploy. Good luck with the best decision for everyone!

Answer 3

I've done this a few times for people. Every state is a little different, but it's fairly simple.

I would add your daughter to the property so both of you or on it. Then I'd have your daughter refinance the property just in her credit and at closing you would sign a form that removes your ownership rights from the property.

In regards to your concerns, most banks won't let her assume the loan. Also, by doing this as a refinance, you will give her the most protection from a potential tax increase.

There is no Realtor fees or addtional attorney fees. I've done this in probably 3 or 4 states.

Answer 4

Loanmaster is close but not quite.
You don't need to worry about the bank finding out about the transfer becasue transferring title to a child is allowed and an exception to the enforcement of the "due-on-sale" clause.

"With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon a transfer where the spouse or children of the borrower become an owner of the property..."


So you want the easiest way to do this? Search for "grant deed" online. Draw one up. Pay a notary and all of you sign it. Poof... they own the house. Make sure you record it.

You don't need escrow, you don't need anything but signatures and a notary.

She can make the mortgage payments and the lender can't do a thing about it. (You are still however responsible if she does not make them)

Buying and selling property "subject to" the existing financing is the easiest way to transfer property, and even easier when it's a relative.

Answer 5

Depending on where you live - rules vary. In California, you CAN go to an escrow company and open escrow...the escrow officer will walk you through it. Have you considered deeding it over to her less liens and encumbrances and have her refinance after she's taken title to the property? That way, if they do tax her, it will only be for the difference of what she assumed and what she bought it for. Hope that helps.

Answer 6

A title company can handle most of the paperwork your thinking about, but you have to pay off the $80,000 amount due. or She has to have enough cash left over at the time of the closing to pay off the lien on the old mortgage.
She needs to apply to a Mortgage Co... or Bank that will lend her the money...usually they will handle the paperwork and charge a small fee for the paper work need ed to transfer it over to her.
But, she will pay dearly for the loan $5000 to $10,000.
you could do a land contract and she could start payments to you, and when the mortgage (old) was payed off, you could get a deed for her to really own it. that is after 30 years...if you live that long....

Answer 7

Her is an idea, talk to your accountant! Will her the house, but keep it, there is a name for it, I forgot. You can have her pay mortgage and once you die, its hers. Nobody has to pay any money to the government or brokers. She knows, its basically her house and you can keep the mortgage you have. If you want the money, just take out a loan and pay the interest with the mortgage she pays you. Be smart, rich people don't pay taxes.

Answer 8

She can either go to a loan company herself an get the loan. Or you can keep the house in your name an let her take the loan over.
Call your attorney

Answer 9

don't sell
put it in a trust
have her pay the 80k in a loan ( she makes the payments )
if she defaults then you make the payments and you still have the house
keep in mind she is married
and if he buys the house
her husband get half if they divorce since it's a community assest
and with divorce rates of 50% why would you want to risk that?

Answer 10

IF IT IS IN A RURAL AREA, CALL USDA FOR HELP. IF NOT, YOU NEED TO FIND THE DEED TO YOUR HOME AND LAST YEARS PROPERTY TAXES. TAKE TO A TITLE/ESCROW COMPANY WITH ALL PARTIES INVOLVED. NEXT TAKE TO COURT HOUSE AND FILE. MAKE SURE EVERYTHING IS CLOSED WITHOUT YOUR NAME BEING ON ANYTHING. THE SMALLEST UNATTENTIVE ITEM CAN COME BACK TO HAUNT YOU. MAKE SURE YOU HAVE CLARITY ON EVERYTHING. DON'T LET LANGUAGE CONFUSE YOU. HAVE THEM TO EXPLAIN EVERYTHING. MAKE SURE ALL PARTIES ARE AWARE, THIS IS NO LONGER YOUR RESPONSIBILITY.