Tax implication of Quit Claim Deed

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My mother bought a house in Florida and a few years later remarried. Although they refinanced the house (with my mom's money), the deed was never changed and my mom's name is the only one on the deed. Now they are both getting old and sick. I am afraid that if my mom passes away before he does, he would get the house which was hers to begin with. Would it help to get my mom to quit claim her interest to us (her children) to avoid her husband getting the house? I believe there is still a mortgage balance. Thank you.

sara · Posted: Sun Sep 24, 2006 9:33 am Post subject: Is quit claim the only option?

Hi Leslie,

Yes, your mom can transfer her interest to you all through a quit claim deed. But as far as transfer of ownership rights are concerned, I shall recommend a grant deed. Unlike a quit claim, a grant deed helps to transfer ownership thereby ensuring that no other person can claim his rights on the property.

Thanks,

Sara.

Caron

Hi Leslie,

Your mom can give away her interest in the property to her children through grant deed but the mortgage balance is not transferred in the process. So, she has to continue paying the loan even after signing the grant deed. And, don't worry, your mom's husband cannot take away the property if your mom hasn't made any provision for its transfer to him. Without a legal process, the husband cannot simply get the property in his name.

Thanks,

Caron.

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MY dad was in a nursing home for 11 months before passing away in June 06. Medicaid placed a lein on my mom and dad's home for the care/expenses. My mom needs a reverse mortgage for repairs to the same home. Can she get a reverse mortgage with that lein "looming" in the back ground? Thank you.

Caron

Hi Nancy,

Welcome to the forums.

Your mom can get a reverse mortgage with the lien on the house. But she has to pay off the outstanding debt in order to get rid off the lien as soon as she gets the loan. She can use the loan proceeds obtained from the reverse mortgage in order to clear the lien.

Thanks,

Caron.

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My mother wants to quit claim her property over to me, she owes a balance of 85000 on a house worth 130000 or more. I spoke with the mortgage company and they stated if I was placed on the deed they would call the note. Are there lenders that will allow me to refi without seasoning?

Samantha · Posted: Sun Oct 22, 2006 9:59 pm Post subject: RE: Refinance without seasoning

Hi Owen,

Welcome to the forums.

Perhaps you mean to say that if your name is placed on the deed, then the mortgage company will demand the outstanding balance asap. But I don't know why they are doing this.

The quit claim does not transfer the liability of repaying the loan. Your mother is still responsible for paying off the loan. Well, you can just ask them as to why they would call the note. And, then possibly you can look for refinancing. There are a number of lenders in the market working towards providing refinance loans without any seasoning. All you require is the patience to shop around and find out the best deal that can work for you.

Before you go for a refinance, get proper knowledge so that you can benefit from the deal. Check out for the required information from the section on Refinance.

Hope this information will be helpful for you.

God bless you

Samantha

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I was able to locate a couple of lenders that would refi without seasoning. my mothers lender said because it was bought under a first time home buyers program they would call the note. Does that make sense

Guest 0.10 Dollars($)

Hi Owen,

There is no such provision that first time home buyers can not refinance their loans. As there is enough equity in the house, I think you should take cash out refinance to pay off the current lender.

Thanks
Miguel

helping_user · Posted: Wed Oct 25, 2006 1:06 am Post subject:

Hi Owen,

I just support Miguel. As I know, there is no such provision that first time buyers cannot refinance the loan.

The rule is different. In some cases the commercial lenders will put a restriction on your loan so that you cannot refinance it for first 3 or 6 months. But most non bank small lenders do not have any such limitations.

Thanks

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My 88 year old father in law wants to transfer the title of his home to his three children by just changing the deed. He is very unreasonable and I was wondering if he just does some kind of simple transfer would his children be liable for gift or capital gains taxes as of the date of the transfer

Caron

Hi Tishmona,

If your father simply transfers the title to the property to his children, then he may have to pay for the gift taxes. The children need not pay. And, if your father may get an exemption on gift taxes for a property worth $12,000, the exemption limit for 2006. For more details, refer to a previous discussion on Gift tax exemption .

Thanks,

Caron.

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What happens if you filed a summons with the court to have your home sold. How long is the process?

sara

Hi Mia,

I guess you are talking about partition lawsuit.

Well, after you have filed a summons with the court to have your home sold, the court will probably allow for a 30 day time period to resolve differences between you and the co-owner. If you are not able to come up with any kind of solution, then the court orders a forced sale of the property.

To know more about Partition Lawsuit, go through our previous discussions.

Thanks,

Sara

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I am considering purchasing a home from my father which he owns outright. I have heard alot about Quit Claim deeds. How would this benefit both of us as opposed to going through the traditional way of obtaining a mortgage broker and so forth.............

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