Posted by Ronald * Starr on November 02, 2001 at 21:48:21:
CRC-------------
I am a real estate investor. Looking at your question, I judge it to be a legal question, not an investing or real estate question. Thus, I suggest that you and your sister and maybe your mother will want to talk with an attorney about this. Many attorneys will give you a free 20 minutes or 30 minutes consultation. There may be a program through the local bar association which provides free consultations for legal questions.
We just found out that my mom has cancer. My sister has been living with her, and will continue to live with her and take care of her.
My mom’s house is worth about 65-70K, she owes about 35K. My sister is not married, and does not have a job. She has about 800 per month in income from other sources.
We want to transfer the mortgage from my mom to my sister. What is the best way to go about doing this? Is there any other way besides my sister trying to apply for a mortgage through the bank?
Your help here would be much appreciated. My mom has anywhere between 6 months to a year to live, so we want to get this done as soon as possible.
CRC…
I’m no expert but I think the esiest way to get around this would simply have your mom deed the property to your sister (and you?) and your sister just keep making the payments. If the bank finds out it can trigger the due on sale clause but from what I have gathered the bank is not likely to do this if the payments are being made. And besides if you don’t tell the bank, how would they find out? I have not personally done this but many RE investors use/teach this technique. I don’t know how estate and probate laws would affect this or if they would. One of the more seasoned guru’s on this site may be able to shed light on this for you?
Good Luck!
-and as a side note - there’s a saying - “Doctors give the diagnosis…God gives the prognosis”. I was in healthcare and saw many people prove the Docs wrong!! I hope your mom gets to do that!! Explore all the alternatives and don’t just accept the Doc’s prognosis. They’re human and make mistakes like all of us!! I hope it all works out for the best.
-Greg