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The kind of interest you want is a joint tenancy with right of survivorship, but that is the easy question.
The tougher question is whether he will be able to make the loan payments on his income alone in the event of your death? The fact that he is on the deed is no protection if he is unable to repay the loan. (I'm assuming that, being on SSI, you will not leave an estate sufficient to pay off the balance of the loan). Even if he can continue the payments alone, the loan will likely accelerate (become due immediately and in full), when you, the borrower/mortgagor of record, die. If your cousin still has no credit history at that time, he will not be able obtain a new loan in his own name, so he will either have to sell the home to pay off your loan, or the mortgage will be foreclosed upon. Either way, he will lose the home. Many survivors try to avoid this result by continuing to make payments, and not informing the lender that borrower has died. More than a few of them discovered that that was also a bad idea when their own financial circumstances changed, and they attempted to modify a loan that wasn't theirs to begin with. It didn't usually turn out well for them.
Buying property with another person is a complex process, and I wouldn't suggest that you go down that road without competent legal advice.
Thanks Kate for the heads up....he'll probably have his credit in fine shape by then..one can only hope that I've still at least 10-15 years in the tank (clears throat)...or maybe we can get a new manufactured home somewhere which are a lot cheaper and tend to be stylish (I would need one with its own lot to consider it though and I don't know how many of those are around).
Things to ponder....**ahem** and I can only wonder why so many of these laws and regulations seem to favor the monetary interests and so few of them the man way down below. But I'm not going to get into that right now...too gruesome. LOL
billy, you need to get an insurance policy that will cover the balance due on the mortgage if and when you "flip the kaboodle". Most mortgage companies will require this, especially in the case of a single borrower.
You make the arrangements for cuz to inherit from you; your insurance policy pays off the mortgage; cuz will, of course, be responsible for paying whatever property taxes and maintenance costs but if his income is stable, that shouldn't be a problem.
Sounds cool theater...now I'm crossing my fingers as I type (how's that for skill) that someone won't show up on this thread with the typical..."yeah but then....." ahhh so many things to look after and then we die. LOL
billy, you need to get an insurance policy that will cover the balance due on the mortgage if and when you "flip the kaboodle". Most mortgage companies will require this, especially in the case of a single borrower.
You make the arrangements for cuz to inherit from you; your insurance policy pays off the mortgage; cuz will, of course, be responsible for paying whatever property taxes and maintenance costs but if his income is stable, that shouldn't be a problem.
Good luck in your new venture.
I think that is great advice. Term policy - DO NOT GET WHOLE LIFE. Do not get mortgage insurance offered by the mortgage company, Just go to a good insurance broker and tell him you need X amount of dollars of term insurance FBO your cousin. (I hope you aren't a smoker or in poor health. If so, the cost of this may be prohibitive.)
And maybe consider having cuz pay for the premiums.
Thx Jk but FBO stands for? Sorry I'm not that great at this....in fact I'm trying to learn the basics so I ask away in the hopes that I can do this right. Oh, what great and rocky adventure layeth before me! lol
Thanks everyone for the continued great advice!
I agree that the major future problem is what happens if one of you dies before the mortgage is paid. Can either of you afford it on your own? You should absolutely each get a term life policy for the amount of the mortgage with the other as the beneficiary. If you can not get, or can not afford, the insurance, be careful about buying something. If something happens to one of you, you can hope you might be able to sell, but either of you could be in a real pickle.
Everything you need to do has been covered in previous posts, just want to wish you both the best in your house hunting ventures in Fl. It is wonderful that you are concerned enough to ensure your cousin is covered should you pass first. You should be commended for such consideration!
The ONLY thing I would add is get a term life policy for an AMT vs the mortgage amy (if possible)....so that as you pay off the loan you are not paying the same for the full price of the house vs just the final few thousand if at all possible. That way, it would not only leave enough to pay the cost of the mortgage off, but some additional to help out.
Tyvm Paka for the compliments....and I will definitely research on your tip as well.
I want to thank all of you really, I had no idea there were so many knowledgeable people here, so I'm definitely going to stick around and enjoy the forums.
Thx Jk but FBO stands for? Sorry I'm not that great at this....in fact I'm trying to learn the basics so I ask away in the hopes that I can do this right. Oh, what great and rocky adventure layeth before me! lol
Thanks everyone for the continued great advice!
Sorry! FBO = For Benefit Of. Whoever owns the policy assigns the beneficiary, who inherits the money (tax free) upon the death of the owner of the policy.
Do check the cost of these policies before you go house hunting.
Let us know how it goes - I think you've struck a chord around here.
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