i want to sell my house to my daughter and me. or have my daughter buy into the existing mortgage?

Question

i want to sell my house to my daughter and me. or have my daughter buy into the existing mortgage. is this possible

Answer 1

If you want to 'sell' your house to your daughter and keep yourself on the title, it's easy. Go the courthouse and file a 'quit claim' document with your daughter's name. It simply puts your daughter on the title to the house. You'll want to make a contract separately with her that spells out how much money you expect from her, if she isn't paying it all up front. No reason to get mortgage companies involved if that's all you're doing. If she doesn't have the money to pay you up front, you can file the quit claim to get her name on the title, and then she can take out a 2nd mortgage on the home and pay you. You'll want her to get approved for a loan before filing the quit claim so you don't go to all that trouble if she can't afford it. Of course, you can take her name off the title by having her file another quit claim doing so. Hope that's not too confusing. Good luck!

Answer 2

Actually, if your mortgage is assumable (as a lot of government loans are), your daughter COULD possibly "assume" your mortgage. If it is in default however (payments are behind), she may have to pay to catch up the mortgage in order to assume it. If you do not have an assumable mortgage, then you will need to refinance, and add her as a co-borrower. If your only goal is to get her on title, that would be a waste of money (because of closing costs). You can add someone to title at the court house by filing a simple deed. You will need to speak to them or a real estate attorney to figure out which deed is the right one for your situation. If you'd like to e-mail me with more detailed information you can through here. I'm can only answer specific mortgage questions if you are in NC, OH, or SC as that is where I'm licensed, and I cannot answer legal questions since I'm not an attorney.

Hope this helps!

Answer 3

While it is possible to sell something to yourself...the paperwork and regulatory nightmares aren't generally worth it...so, like someone else said... You can't sell something to yourself.

The easiest way to do it is go down to you bank and ask them how to do it. It will most likely include your daughter paying you a sizeable chunk of change (and continuing payments). In any case, make sure you "have paper" and a clause indicting that neither of you can sell the house without the other's agreement, but that either of you can buy-out the other, with their agreement should one or the other decide they don't want to stay in the house (like if your daughter married and moved out, or had to leave town for a job, etc...). There are, however, several downsides, among them, if either of you incurs some serious debt, a lein could be placed against the home that could make it nearly unsellable, or cause you to sell at a much lower than market value.

The best way I can think of would simply involve your daughter (assuming she is 18+) and yourself going to a lawyer to draw-up papers stating that your daughter is going to pay you a fair amount (50% of market value typically) for a 50% ownership in the home. Once the paperwork is completed, you would both have to sign it, then head down to the bank and have her get a mortgage for half the value of the home. She then signs the cash over to you, and you take the money to pay-down (or off) *your* mortgage when it comes due for renegotiation.

Just keep in mind, that most of the time, if the question in Finance or Real Estate starts "How do I...", the answer will typically include either "See a Lawyer," or; "See an Accountant."

Your best bet would probably be to simply draw-up papers to let your daughter pay rent, with yourself as Landlord, and she pays half the cost of your monthly mortgage payments (plus half utilities) and half your (property) taxes. Make sure to claim the money each year as income derived from real property, and make sure she does the same for expenses. If/when the two of you are ready, she can buy you out (again, for example, should she marry and start a family) by simply paying you the value of the outstanding mortgage amount, and taking it over.
Remember, however, in this case, you become a Landlord in fact, and your daughter could conceivably complain to the City, Province/State and have work orders for various repairs issued to you. Failure to act on them could result in the house being condemed, or fines that would cause you to sell. Add to the fact that the Building Inspector can then now come down to inspect the house whenever they wanted (with proper notice), since you would have to list the house as a rental property.

Answer 4

Yes, it's possible.

What is the house worth?
What did you pay for it?
How much is the mortgage?

You must sell the house (or her portion of the house) at the fair market value. Anything less is considered a gift.

If your daughter needs a mortgage to pay for her part, talk to the bank. They'll need to know since she may or may not be able to just take over your mortgage. (If you just have her pay you and then you pay the mortgage, then neither one of you would be able to take the interest deduction.)

Answer 5

There is no such thing as your daughter "buying into" your existing mortgage.

You can quit-claim her onto the title and leave the mortgage in your name...that is the easiest route.

The only way you can add her onto the mortgage is by a refinance...and I fail to see how that is going to do anything but cost you money.

Answer 6

I don't know if you can have her added to the existing mortgage but you could always refinance and have her name added to the mortgage that way and then have her name added to the deed. You haven't stated why you want to do this but depending on the reason you might have other options.

Answer 7

What do you mean sell?

(1) You cannot sell something to yourself.

(2) If you have a mortgage, then the mortgage company has the title (you don't really "own" the house, they do) and they will likely have to approve anything you want to do.

Adding someone to the bill (mortgage) won't likely be difficult, although it might be costly and time consuming.

Adding someone other than your spouse to the title is asking for tax complications down the road...

Why do you want to do this?

Answer 8

both options are possible. I suggest you talk with your tax adviser to minimize your tax liability. for example if you've been in the house for a long time, the house will have appreciated significantly in value and you would be liable for paying taxes on capital gains (unless you invest the proceeds in another property of equal or greater value).

my questions to you would be: what does each of you have to gain from this transaction? do you plan on continuing to live in the house? if so, do you totally trust her (and her husband/boyfriend) to allow to continue to live there? you'd be surprised what people do out of greed.

another option would be to have a revocable living trust to which the house would pass when you die. this is how people avoid probate. your daughter could be your heir and would receive the house according to the terms of your will (separate document from the trust). Revocable means that you can change your mind and redo the whole thing.

to have your daugher buy into the existing mortgage means she has to qualify as a cosigner on the loan -- you'd need to contact the lender. to add her name to the title is another formality.

this is really about more than a financial transaction between family members. it's about planning for your future. get as much information and weigh your options. good luck.

Answer 9

Just add your daughter to the title. Go to your local County Clerks office for information.

Good Luck

Answer 10

your question is confusing you can have her put on the deed by having a quit claim deed done with both names..if you want her on the mortgage refinance and add her..its hard to steer you in the right direction without knowing what you ultimate goal is