Can my stepmother sign over her home to me because she can no longer afford the payments?

Question

She is a month behind. Would it be like a new home purchase or simply signing some papers?

Answer 1

If you have the credit, can you afford it? And a good income will be needed.

Answer 2

Can she sign it over to you? Probably not, but her loan may be assumable. Look at her loan documents to see the parameters of the loan. Why don't you check with the current lender and see what options they have?

Off the top of my head, I'd say your best bet would be to purchase her home from her. If she has any equity in the home, and is basically trying to get out of the mortgage, she can give you a gift of equity for the difference between what she owes on the house and the market value. If the house is valued at $100,000 and she owes $50,000, she gives you a gift of equity of $50,000. That makes your loan-to-value ratio 50% which will get you a better rate than if the loan-to-value is 100%.

In any case, she needs to address the delinquency right away. She should call the lender and explain the situation. The lender doesn't want her house; it's nothing but expense for them. She's not the only person to have problems with mortgages right now, and they may have some plan to address payment issues. The worst thing to do is ignore it. It won't go away.

Answer 3

There are a couple ways this can be done. You can have a lawyer draw up the papers and you claim ownership/the deed to the property/house. The loan can still stay in her name but in the contract between you and her you will be required to pay the mortgage. There is no need (unless you want to) come up with the down payment and put the house in your name. It is easier to purchase the house yourself but as mentioned you can have a lawyer do the paper work for a few hundread dollars. There will still be a mortgage and if you default the contract will default as well and the bank can foreclose under her name. It sound confusing but it can be done. Good luck.

Answer 4

Your stepmother owes her lender the current loan amount on the property. She can sign a quit claim deed in your favor but this does not release her from her obligation to repay the loan. You, more than likely, can not assume the payments without lender approval because the loan documents contain what is called a "due on sale clause". This means that the lender controls whatever title changes are made to the property. You and your stepmother need to talk to the current lender.

Answer 5

It depends on the language of the mortgage agreement. Most lenders have had a no-assumption clause in their legal-speak for some time now. unless the mortgage is really old i doubt very highly that you will be able to assmue the payments.

in that case it would be considered a purchase and you woul have to jump through all the hoops that normal mortgage applicants would need to. fro instance a credit check, an appraisal, etc.

One option would be for you to just make the payments, for her however this would not be of any value to you from a tax standpoint. if your relationship with her is a good one and you trust her, you might want to try that and have he give you the tax money at refund time.

Answer 6

Most trust deeds have a "Due on Sale" clause which means that she would have to sell it to you and you would be required to obtain financing.

The other option is to simply have her add you to the title on the property. You can then help her make the payments and she can leave the property (or any portion thereof) to you upon her demise.

Answer 7

Not unless you formally go through the process with the bank to prove you can handle the financial burden. She cannot simply sign it over. You will have to go through escrow, the bank will run your credit and there will be lots of paperwork to fill out. Good luck and I hope it all works out for the best!

Answer 8

Depends on where you are, if she puts you on title of the property and wants you to put the mortgage in your name, you could possible do it. Basically you will need to occupy the property with her, and you can do a purchase of the home from her, and she can gift you the equity. If you have more questions my email is [e-mail] I am a mortgage professional and will be happy to help

Answer 9

No that cannnot happen. It is an arms length transaction. Let he become current and then have her refinance the property. Do she currently have an FHA loan...and if so what is her rate. I would recommend attempting to get yourself on title during the refinance.

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Jonathan Brinker
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