hi everyone my mother quick deed her house to me 2 day ago, the house has a tenant living in it and has not paid rent since oct. 29 the tenant owe NOV. and DEC. rent payment for a total of $1369 and the is currently in default with the mortgage company which is in my mother name. so question i have do i sent the tenant a Demand for Possesion for non-payment and do i refinace the house to get the mortgage in my name or call the mortgage company and see can i assume the mortgage also the house has 20,000 fo equity in it and i got the house with no money down
You cannot agnore the mortgage company, If you are behind by three months they will serve forecloser papers on you and then they will not let you pay at all with out going through a lawyer, I have a friend in the same situation and they will not take their money unless they pay all the back payments and then some. They tried to set up their payment through their payroll check but the bank refused. Your first priority is to make those payments, then look at refinancing. Also not sure you can do a quick deed without telling the bank, most banks wont let you hold the old mortgage after turning the deed over. As for the tenent tell him he has to move and find someone else, sounds like he is taking advantage of your mother, let him know theres a new sheriff in town. In my opinion it doesnt sound like you got a great deal, you got stuck with a bad tenent and now you have to come up with at least three months mortgage payment ( which will eat into your equity), also if you use a realtor to sell the property that will for sure take all the equity. Id give the deed back and try to sell the property for her, but make those payment no matter what.
You also need to find out what interest rate she is paying verses what interest rate you on your own could get. You have to ask yourself if you want the house and for what purpose, if its to rent it out then the bank will look at the mortgage differently too and will reguire an appraisel.I would try to work with the current bank first. Does she also owe back taxes?
thank you cosertvative, as far as the taxes they are up to date and when we did the deed i just added my name to it. she still has her name on it also
her interest rate is 11% i can get a 6.5%
Is your last name the same as your mothers?
If not and you have not recorded the deed at the county I would do a purchase from her
Even if it is the same you still can do that but if the payments are behind at all it will look like a foreclosure bail out and most banks will not touch it (some still will)
As far as the bad tenant I would tell them to move out by the 17th and you will give them $1,000.00 it beats the eviction process. Then when they call about the $$ tell them you will take it out of the $$ They owe you!
First and most, you need to bring the loan current. if you do not have the cash to do so then you will probably lose your ownership share.
Second, you mentioned your mother is still on title; that means you only own half the property (and thus your share of equity is 10k).
Next, get those tenants out; offer money and only give the money AFTER they move. Otherise start eviction immediate (this will cost money).
Finally, you may have a IRS tax problem. If your mom gave you half the house, you just got a gift. Above $11k per year, its taxable. It sounds like you got 10K in equity so you should be OK.
Also, the sale between blood relatives is usually not considered a bona fide sale unless its at “market price”; this both for IRS as well as local tax considerations. The good side I seems to recall that per the Garn St-Gemain Act of 1982, transfer between relatives does NOT cause a “due-on-sale” clause to be activated. Of course, at this point, you need to get the loan current.
You got a number of angles that need attention. Good luck