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tizzlevanhizzle525 · Joined: 08 Feb 2009 Posts: 1 1.38 Dollars($)

How do we protect our cottage if my mom is probably going to default on her primary mortgage?....We have a cottage that is in our Mom's name in Michigan and my brother and I are going to take over the payments. We are doing this because she can no longer afford the payments and now it looks like she might default on her primary mortgage in California. What's the best way to handle this title and mortgage transfer? Is there something we can do to prevent the mortgage company from coming after the cottage?

sara · Posted: Mon Feb 09, 2009 3:30 am Post subject:

Hi tizzlevanhizzle,

Welcome to the forums.

If your brother and you are taking over the payemnts, then I guess your mom shouldn't default on the loan. Isn't it so? Do you want to get the mortgage transferred in both of your names? In such a case, your brother and you can refinance the loan in your names. The title will be transferred at the time of refinance when your mom can sign a deed over to your brother and you.

Take care

Guest

Hi Sara,
Thank you for your response. I aplogize for my question being a little confusing. My brother and I are taking over the mortgage on the cottage but my Mom can not afford the mortgage on her primary residence in addition to the cottage.
So, how can we protect her primary mortgage company from coming after the cottage mortgage?

Thanks for your help,

Todd

elnoralittle · Posted: Mon Feb 09, 2009 12:35 pm Post subject:

The best option is to try to refinance the cottage into your name. Your mother would stay on title and then you could quit claim her if you wanted to remove her after closing.
Since your mother would be on title and not the loan, if the lender will do it, your mother's credit might not be considered.

You could also have your mother sell the property to you and have her give you a gift of equity to cover closing costs.

jenkin7 · Posted: Wed Feb 11, 2009 5:26 am Post subject:

Hi tizzlevanhizzle,

Since the cottage is on the secondary mortgage, I think if your mother defaults on her primary mortgage, the primary residence in CA would be foreclosed. This will not affect the cottage in any way. She can also quitclaim the cottage to you, which you can refinance to pay off the current mortgage.

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