OK, so here’s the deal. 3-4 years ago, I wanted to buy this house in Dallas. I was a bartender at the time and a regular of mine was a mortgage broker. He took my information and said he’d get started right away one approval. Long story short, I found a house and I didn’t get approved. I asked my father to co-sign for me so he submited his information. The broker came back saying co-signing would not be allowed unless we were married (lol, not gonna happen, it’s my dad), but that my fathers credit/income was sufficient to write a mortgage for him. That’s the route that was taken, the mortgage was in my fathers name, but made the payments and moved into the house. Last year, my father passed away and the house went onto my mother, as she was his spouse, but also because her name was on the deed. Now my mother, knowing that it’s “my” house, although legally it’s hers, wants it to be in my name.
What needs to happen? what papers need to be filed? can a title company take care of everything or do I need a RE attorney? can I work with the tax office to do it, or do they insist on a title company/attorney?
The mortgage as far as the bank is concerned is my mothers responsibilty, even though I make the payments. All I (and my mother) want to do is have her name removed from the deed and my name added, making the property titled to me.
You could have your Mom transfer the property to you with a Warranty Deed, however she is still going to be on the loan. If that is acceptable to her then this is one way to go.
You could also have Mom put the property in a Living Trust with you as the Trustee and Beneficiary of the trust, but I would want an Attorney to look at this way of doing it, because I am not familiar with the laws where you are.
So it is really up to Mom how she feels about it, this is two ways of getting the job done.
Transferring title… No Problem… She can just quit Claim deed her interest to you… But, in the event she did sign the note… That won’t solve that problem…
If she didn’t sign the note… then you have the bank in a rock and a hard place…
Because the property transfers to the heirs… But, the liablity doesn’t…
You could play hard ball if you wanted to…
On the other hand… Why would you… if you own the house… and no one has the liabilty… then that’s a good thing…
Hmm…not sure if she signed the note (I assume you’re referring the the mortgage with the bank?). I know her name is the the property deed. I was at the closing and my father and mother pretty much signed all of the papers together. As for the mortgage…I’m not sure, but I think my father signed it alone. However, when the bank found out he had passed away, they sent papers to my mother asking for her SSN, etc. Now all mail regarding the property come with her name on it. If I call the bank’s auto phone system, I use her SSN to access the account to make a payment by phone or whatever.
anyway, tell me more about this quit claim deed. What is it? How can I file it? And…does it take the property out of her name and place it in mine at the county courthouse?
Sorry about all of the questions, I’m still new to this, but learn more every day!
It is unusual that the husband and wife do not both sign the mortgage note, however it does happen. Most lenders if you are married want both parties on the mortage note. See if Mom has the original paperwork when they were both at the closing of the property this will tell you if she is on the note. Since they were both there and signing I would think she is on the note.
I always suggest a Warranty Deed rather than a Quit Claim Deed, a Warranty Deed ensures that “total interest in the property is transferred to you”. In other words he who has the Warranty Deed in his name owns the house. Whereas a Quit Claim Deed only tranfers an interest in the property, so to be on the safe side use a Warranty Deed. I don’t know if you have brothers or sisters, but Mom could Quit Claim an interest to them or Uncle Joe and each of you would have an interest in the property. I have seen situtations in families where a parent becomes confused as they get older and more than one person has a Quit Claim Deed and everyone who has a Quit Claim Deed starts claiming ownership.
My best advice would be to see an Attorney and have him prepare the proper paperwork. There are tranfer tax considerations to look at however, if it is a gift to you you may be exempt from the transfer tax. I also understand that sometimes hiring an Attorney may be more than our budget could withstand at this time. In this case even though they are not suppose to give legal advice check with your county recorders office or a local title company and explain the situation with Mom, they may be able to guide you in the right direction.
If you are unable to get the help you need Private Message me here and I will check with one of my Subject To students to see if they would be willing to help you, so tell me what state you are in. There may be some other considerations to look at when transferring the property in your name, I can go over this with you. You may want to look at a Living Trust for Mom. Not trying to confuse you since you are new I am looking to cover all bases to help protect you.
A deed that conveys a grantor’s complete interest or claim in certain real property, but that neither warrants nor professes “that the title is valid”.
Meaning if there is more than one Quit Claim Deed those that have one have a interest in the property. Not saying there is more than one Quit Claim Deed in this case, however I have seen more that one person hold a Quit Claim Deed to the same property, then the courts have to sort it out.
Warranty Deed:
A deed containing one or more covenants of title; a deed that expressly guarantees the grantor’s good, clear title and that contains coventants concerning the quality of title, including warranties of seisin, quiet enjoyment, right to convey, freedom from encumbrances and defense of “title against all claims”.
End of story.
In Machines case he has brothers and sisters, he lives in Utah, however the property is located in Texas. So to be on the safe side the Warranty Deed would stop any claims against the property since his Mom is the only one on title at this time.
I have question on Machine’s situation. Let’s say his mom’s name is on the note (loan,mortgage,deed of trust…) and she deeds the house to Machine using Warranty Deed. Does Machine need to inform the insurance company of the changes? The name on the insurance reflect the name on the loan? What if something happen to the house and mom is no longer here to claim eventhough Machine has a legal title to the house? I am curious to know how to handle a situation such as this.
I spoke with machine this morning to get some additional details. So I am up on what is going on so to speak.
Mom and machines last name are the same so in this case Mom could add machine as an additionally insured on the policy without drawing attention that the deed is going to change or has been changed.
I recommended that he download a Texas State Specific Warranty Deed off the internet from a Legal Form Store. Then call the recorder or tax office in Texas to get the proper form from them so that the property transfer will show the transfer as a gift, thus possibly eliminating a transfer tax on the property.
This type of arrangement is only specific to Machine and his Mom and not to be confused with how the insurance is handled in a typical creative real estate deal.
John thanks for your help, I think I found what I need on the net and will be contacting the county tax office next week to see about the gift paperwork, etc.