Does anyone know... (mortgage broker, lawyer, home equity loan)

[gwenrn]

Where I would begin in finding out how I would be able to (legally) buy my mother's house on LI for a certain amount of money (i.e. 250K - assessed at a lot more), putting the house in our name. We are working out an agreement where the house would be in our name and we would buy it outright from her, but she would continue to live there with us (expenses paid).

I assume this happens rather frequently on LI but do not know where to even get started or what's involved.

[LiSuffolkgal]

To answer your question with all these legal matters you have to contact a lawyer to write up the
necessary
paper work to transfer over the ownership of the house Im pretty sure you have to have it legally changed in order for it to be valid.I'm sure you will get more replies but I would call a lawyer i'm sure they can help you or at least point you in the right direction.Good Luck!

[Kbinspections]

There will be tax issues so you may want to set up a irravocable trust.

You will need an attorney. I can give you a few names if you need them.

We had done with my mother to protect her assets when she became ill.

[gwenrn]

I'm sorry to hear your mother became ill...did you live in the house with her? We would actually make arrangements that she would move into a certain part of the house and we would take over the majority - but as far as legality - we would buy it outright from her for a predetermined amount.

[Keeper]

I would definitely talk to an attorney. You may not need to buy it for that amount but for much less like $100.00

If your mother has to go into a nursing home for instance, in most cases I have heard about they will make her pay until all her money is gone. I have not had that exact experience and don't live in NY, but my mother had a car in her name. If she sold it, medicare would take that money to pay for towards the nursing home. Just something you need to consider.

[Kbinspections]

Originally Posted by gwenrn

I'm sorry to hear your mother became ill...did you live in the house with her? We would actually make arrangements that she would move into a certain part of the house and we would take over the majority - but as far as legality - we would buy it outright from her for a predetermined amount.

No we did not live with her. It does get tricky though with the taxes and other issues.

[Snapsbestfriend]

Find out about a "life estate" via an elder attorney...Good Luck!

[PhilG]

When I sold mortgages just a year ago I used to advise people in your situation to apply for a conventional mortgage at an agreed sales price with a large gift of equity. I don't know if banks do these anymore, but it's worth checking out. You can buy the house for $300,000 with your mom "gifting" you $60,000 in equity (assuming she has it to gift). Then you apply for an 80% loan-to-value conventional mortgage for $220,000. The house has to appraise for $220,000, and you have to prove she's your mother. You get an awseome interest rate, no PMI, and the low mortgage you want. I assume these sort of programs don't exist anymore, but it can't hurt to ask a mortgage broker (a good one!)...

Also, she can just deed the house over to you, and after a year (or less with some lenders), take out a fixed home equity loan (1st position) for the $250,000 she needs. All you really need to do is the legal paperwork and new title/title insurance.