Posted on: 28th Oct, 2008 10:24 am
My parents would like to transfer their house to me. They can not afford paying monthly mortgage payments anymore. They are retired and have limited income. They want to transfer the house and responsibility of paying mortgage to me. I will let them stay in the house and have them pay rent to me and I will cover the difference for mortgage payments.
What is the easiest and cheapest way to do that?
They have an outstanding mortgage balance of $138,000, the property is valued by county for taxes at $207,000.
We live in MN.
Thank you
What is the easiest and cheapest way to do that?
They have an outstanding mortgage balance of $138,000, the property is valued by county for taxes at $207,000.
We live in MN.
Thank you
hi lanastrub!
welcome to forums!
in order to transfer the property in your name, your parents have to quitclaim the property in your name. they may also include the clause of life estate which will give them the right to stay in the house until death. once they sign a quitclaim in your favor you will have to refinance the property. this will transfer the mortgage in your name. in this process certain transfer taxes and stamp doc fees will be charged.
feel free to ask if you have further queries.
sussane
welcome to forums!
in order to transfer the property in your name, your parents have to quitclaim the property in your name. they may also include the clause of life estate which will give them the right to stay in the house until death. once they sign a quitclaim in your favor you will have to refinance the property. this will transfer the mortgage in your name. in this process certain transfer taxes and stamp doc fees will be charged.
feel free to ask if you have further queries.
sussane
I have the same situation as above... My Mother would like to transfer her house to me... I am not on loan or title... she wants to have me take over the house...so I would have to refinance the house...I noticed you mentioned there may be transfer tax implications.. What is that and how much does that run. From what I understand and correct me if I'm wrong... there is no re assesment of the property taxes since its being transferred from parent to child correct?
Hi Helen,
There can be a reassessment of property once the property is transferred just for the purpose of property taxes. Moreover, if your mother transfers the property to you as a gift, she may be liable for paying the gift tax.
Thanks
There can be a reassessment of property once the property is transferred just for the purpose of property taxes. Moreover, if your mother transfers the property to you as a gift, she may be liable for paying the gift tax.
Thanks