Signing my moms house in my name?

Question

My mother got lead into a bad deal with her house, threw the morgage company and now she owes more then she can afford in payments and is running up alot of debt.

how if any way can I help her. Taking over the house and refinance it in my name or any thing

Answer 1

Technically, you'd probably have to treat this as a purchase, the bank guy is correct.  It really depends is your mom is upside down or not and if you qualify.  The other issue here is just how bad is mom as far as credit goes.  If her credit has been damaged, can you afford this on your own?  It's hard to give you a very decisive answer here, but I suggest you find yourself a qualified mortgage professional to see what options you do have.

PS  I'd like to know what you mean by bad deal?  If your talking about an arm that has adjusted, the situation may not be bleak, especially if she has equity in the home.  There is a program called FHA secure (fha.gov) that will put her in a fixed rate program, you basically have to prove that the payment issues stemmed from the rate adjusting.  It's a thought, good luck and feel free to ask questions

Answer 2

Your buying the house doesn’t solve the root issue. Whether you buy it or your mom refinances, someone has to come up with the cash to cover the difference between what she owes and it’s current value.  So if you can make that happen, she should be able to refi in her name. Or if you want to buy the house, you can do that too so long as that difference is covered.

Answer 3

You should be able to refinance to save her but I dont know if it can be in your name unless she sells it to you. She just cant be taken off because she signed the mortgage so she will be responsible until its sold.

Answer 4

I'm a Sr. Underwriter for a bank, despite by screen name.

If you took over your mother's house, before you could refinance you would need to be able to document you've been making the payments for the last 12 months (6 mos min).  Other than that, you could purchase her home.  If you don't have a real down pymt, a "gift of equity" could be used.  But the equity would have to be there.  In this market, good luck.

Answer 5

If you can qualify for a loan that would pay off the existing mortgage, that would be one answer. She could sign a quit claim deed, transferring the property to you. Then you would get a new loan, pay off the current mortgage and go on from there.

It can be dangerous and the success of such a plan depends upon you and your mom remaining close.

Contact an attorney who specializes in real estate. He can help you with the procedure.

Answer 6

Is your credit good enough to qualify for a mortgage? Do you have a steady income that's enough to keep up the payments? If so, then talk to the mortgage company about getting the mortgage put into your name instead of hers.

If you don't, then ... doesn't seem like there's anything you can do.