Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So I reached out to my CPA. She stated that since my dad is still paying the mortgage and taxes I'm fine. Also, in the future, if I get the house I won't be on the hook if I sell the house. I was informed that the taxes and mortgage is merged together so I should be able to pay it if I decide to. Also, like I said prior, it's a 2 family house. So I would have the option of renting out the 1 family house.
Mortgage and taxes are merged together? Those are 2 separate things. They may be covered by the monthly payment made because the taxes are held in escrow.
You also need to check and see if what your dad wants to do can be done in your state. This isn't possible in all states without adding you to a mortgage. And it wouldn't be the current mortgage. You both would need to apply for a new one so that you're both on it. It can be VERY messy in some states. My state is like this and it's a total pain.
So I reached out to my CPA. She stated that since my dad is still paying the mortgage and taxes I'm fine. Also, in the future, if I get the house I won't be on the hook if I sell the house. I was informed that the taxes and mortgage is merged together so I should be able to pay it if I decide to. Also, like I said prior, it's a 2 family house. So I would have the option of renting out the 1 family house.
Everything might be fine if he dies, but find out what happens if your parents go into nursing homes. I think putting your name on the house will protect your share from the nursing home getting it, but five years will have to pass because of the Medicaid look back, you might be better off if the entire ownership transfers to you now with the 5 year medicaid look back tracking assets because your parents are getting old. MY brother and I bought my mother's house years ago to take her name off for that reason, sibling ownership of a home protects it from Medicaid if one owner goes into a nursing home. MY 91 yr. old neighbor has his house in a trust so Medicaid can't grab it. I know a woman who is suing her real estate lawyer because he didn't protect her house from Medicaid. Be on the alert that professionals like CPA's and even lawyer's will plan for deaths but not nursing home consequences, it's happened to people I know.
This is one way to pass his equity in the house to the co-owners if he should die. He still owes the mortgage though and if he dies the mortgage company might not accept you and cause you to re-apply.
No, there's a national law now that prohibits that. People who inherit the family home are entitled to take over the note without applying.
He still pays the mortgage/rent. It's a 2 family house. The tenants pay rent which he uses towards the mortgage. He said having my name as a part-owner will benefit me because the house would be in my name. Like listing someone as a beneficiary. My parents are in their 70s.
I'm still not following. Is he going to put your name on the deed? Will you be liable for the mortgage? The fact that he hasn't told you why he wants to do this, seems sketchy. If he becomes disabled due to some kind of illness (stuff happens. Parkinson's, or other diseases, accidents, whatever), you'd be liable for the mortgage. Is the entire mortgage currently covered by the renter, or does your dad contribute to the payment as well?
So I reached out to my CPA. She stated that since my dad is still paying the mortgage and taxes I'm fine. Also, in the future, if I get the house I won't be on the hook if I sell the house. I was informed that the taxes and mortgage is merged together so I should be able to pay it if I decide to. Also, like I said prior, it's a 2 family house. So I would have the option of renting out the 1 family house.
It looks like you may be in NJ? If so, yes, town taxes can get rolled into the mortgage but it is not smart to do. Better off paying them on your own. Your parents may be missing out on some senior discounts.
How long have your parents had the 2 family house? My parents had one in Roselle, my dad did the same, used the rent to help pay the mortgage.
You should find out how much time is left on the mortgage. As people are saying, the house may go to you with their deaths, you would have to apply for your own mortgage if it is not paid off when they die. You could get turned down for the mortgage. Is your mother on the mortgage or deed too?
Do you have siblings or are you an only child?
Your father is probably wanting to make sure the house goes to you, that if one or both of them go to a nursing home needing medicaid, that they do not take the house from you. You and your parents should find an attorney to figure out the best way to do what he wants to do.
I see you posted about an apartment in Jersey City back in January. The rental market is crazy right now. I'm in South Jersey. We had to give a years rent plus the security deposit. Some people are jacking up the rent $500 or thousands more per month because they have so many people applying that the sky is the limit.
Wait until the market settles down because it will correct in some areas. My county Gloucester is one of 8 in NJ that had the largest increases in prices. We just sold our house. We did not buy because prices were doubled from before COVID. We lost $100k in the last crash of 2008, we happened to buy in 2007. We ended up getting almost $100k more then what we paid so it thankfully worked out. So thankful I listened to my gut to not buy right now.
I'm still not following. Is he going to put your name on the deed? Will you be liable for the mortgage? The fact that he hasn't told you why he wants to do this, seems sketchy. If he becomes disabled due to some kind of illness (stuff happens. Parkinson's, or other diseases, accidents, whatever), you'd be liable for the mortgage. Is the entire mortgage currently covered by the renter, or does your dad contribute to the payment as well?
Add to that a liability: if the OP is in an accident, etc and is being sued - by contractors, tenants- he is responsible.
I'm in my 30s and I currently stay with my parents. I chip in with the major bills but I don't pay rent. My dad is pressuring me and wants my information so I could be listed as part-owner of the house. He says this will benefit me. Any downsides I should watch out for?
I'm in my 30s and I currently stay with my parents. I chip in with the major bills but I don't pay rent. My dad is pressuring me and wants my information so I could be listed as part-owner of the house. He says this will benefit me. Any downsides I should watch out for?
Right now, since you don't own property, you are eligible for "First Time Buyer" programs. I don't know how advantageous they are, but you might want to look into it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
