My parents want to give me their house for the amount they owe on the mortgage. Can they do this?

My parents currently owe about 240k on their home. I would say it might sell for 300k if put on the market right now.


I want to take over the mortgage and also take over the title.


What is the best legal way to do this without having to pay tons of fees, taxes etc? My parents have owned this home for over 2 years so no worries about capital gains taxes.My parents want to give me their house for the amount they owe on the mortgage. Can they do this?
you need to consult a realestate lawyer.


you can not 'take over' a mortgage, you can get your own. then you can legally own the houses.My parents want to give me their house for the amount they owe on the mortgage. Can they do this?
Contract for Deed is what you can do. Contact the current Lender you parents have their mortgage with. You can also contact a Real Estate Attorney or a Title Company and they can take you through the process.
my advise for you is to go and speak to banks and estate agents, and also to some loyars for adviise, I thing if the house has more than 3 bbedroom and is situated in a good area it woul sell for more that you think.


goodluck darling


miuccia :-)
Quick claim deed. They sign over the house and they are eliminated from the deed....or add you on.
Your parents can add you to their title at any time without paying off their mortgage. You're not a party to this mortgage so the lenders interest will supercede yours because the mortgage was recorded prior to you being added to title. If your parents loan was an assumable loan then you could take over the payments. If not your parents would have to pay off the loan. There is a way to avoid so much fees if your thinking of taking a mortgage out on this property to payoff your parents. You would have this loan done as a purchase. You and your parents would need to draw up a purchase contract for what you think the house would sell for on the market lets say for instance 300k. In the contract have an addendum drawn up stating the sellers will gift the buyer 60K in equity which would be the difference between what it would sell for and whats owed on it. You must document in writing why the sellers are gifting you this equity. The letter should state that the sellers are your parents and although the house is worth more they would like to give you this equity as a gift . Now you dont need 100% financing this should cover your down payment. You only need 80% financing from the lendering allowing you to get a better rate with lower fees and you wont need mortgage insurance either because your loan is below 80% loan to value.
Perhaps you need to study the legal terms of what you are describing. Perhaps a bank, and check where you do your banking for qualifying for a mortgage, and that's free!


Also check with the current lender of the house, ....that bank or mortgage company and discuss your plans with them.





You will still have to pay closing costs, which include points, fees, title insurance (at least $1,000), and whatever they choose to charge you.....Your parents have nothing to do with your qualifications for paying a mortgage.





Understand that you cannot take over someone's mortgage....If you want to consider this, you must contact the mortgage company, and apply for a new mortgage with them.





You must qualify for any mortgage whether it is $240,000 or more. A lending institution does not have to approve you, as they only approved your parents (and that's probably two signatures).





Why are they in such a rush to sell it? Something does not sound right.
The best way to do this is for your parents to create a trust, place the property into a trust, have the trust make the monthly mortgage payments and make you the beneficiary of the trust. That way you will own title to the property and the lender cannot evoke the ';Due on Sale'; clause.





Regards
You have to get your own loan, or apply for a loan through the company that the present loan is with and get approved for that. You don't have to consult a lawyer to buy a home, your parents can sell it to you if they want to and they are selling it at a loss, so there shouldn't be any appraisal issues. Quick claim deed is an option also.
Take out a mortgage of your own to pay your parents off. You may want to check with a lawyer anyway just in case you can have it transferred to your name. You will have to have a lawyer do a search of title etc . for the bank anyway.
Satar's answer above is the best one, which is to have your parents put the house into a land trust. This should not trigger the ';Due on Sale'; clause, and you can keep making payments on the mortgage. It might help to get a bank account in the name of the land trust, and send your monthly checks out of that bank account.





One other option would be to have your parents add you onto the deed. They would remain on the house, and you would just be a 3rd person on title.
My best advice to you is not to get into signing Trust Deeds because the bank has the first right over the property in the event of any complication arising like say if your parent died, and you're unable to pay a few instalments, then the property is still not yours legally but the deceased's.


So if you have siblings who want to claim their share, they can do so without your consent.