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7 years ago my husband and I purchased a home with his Mom. We put a very large down payment and she very little, and the mortgage went strickly in her name ONLY. Now all these years later we are prepared to buy her out, but we do not want to repurchase the home and invest more money in it, we are trying to find a way to transfer equity or deed or whatever is easy and legal in the State of Texas. Any advice? I loosing my mind here, she is about to retire and in her 70's and it is NOW or could be never and end up some day in wills and probate and I find that unfair since the home really is more ours than ever was her.
Oh my, what a mess. I imagine there were reasons why you plunked down the cash but put it in her name originally. Those reasons may still have some bearing on how you move forward. Is your MIL ok with this plan? Who has been paying the mortgage all this time?
It sounds like you may need a new loan since the mortgage is strictly in her name. In reality, you guys will be taking over the title. But, if you need a mortgage, this will be treated as a purchase and you will have expenses in getting a new loan. Nothing can happen unless your MIL agrees.
If this were a cash deal, you all could simply do a quit claim deed in Texas. Very easy and common and don’t even need a lawyer.
However, you usually can’t assume a mortgage these days as most mortgage loans that initiated since the 1990’s are non-assumable. If you all agree to the terms; how much you will pay her and what credit she will provide for the down payment you originally made, you really don’t need a lawyer to do this. First discuss with your MIL so you are sure you all agree of what your “buyout” is. Then contact the existing mortgage holder and see if they will do an assumption of the existing loan (probably not, but do check). Also check if they will simply add you guys to your MIL’s mortgage loan. That way, you could all be in the loan and it could be set up that the survivor gets ownership. That, or assuming her loan is the most cost effective way. If neither assumption or adding you is a option, go to a local mortgage company and discuss all this with a loan officer so you understand all the closing costs and your eligibility to get a new mortgage.
Location: Stuck on the East Coast, hoping to head West
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You need an attorney and possibly tax advice.
Is the deed in your mother in law's name? Who was making the mortgage payments? If you and your husband were making the mortgage payments, do you have proof in the form of checks? Receipts?
Did you have a written agreement with her? Did she live in the house? Who paid for maintenance on the house?
One more item in addition to who makes mortgage payments. Who pays the property taxes ?
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