Purchasing family home/add to title/multi family

Abigail Long · 2022-10-29T10:41:31-07:00

Hi all, Look for some advice. I’m active duty military and my parents have had a home here in Hawaii for 30 years. They currently owe roughly $260k on it. And, it was appraised for over $650k. It’s a single family home 3b/1b with an extension that is supposed to be the main home 4b/2 1/2b. The extension hasn’t been completed due to financial hardships in the past. My parents are older and I am worried about their health. I am not on the title of the home. For years, I have tried to assist them in payments. And, trying to finish the extension, but have been unsuccessful due to being away. What is the best way for me to be added to the title or take over the mortgage? And, finish the unfinished extension to help potentially add some renters to help pay for the mortgage. I’ve considered doing a cash out refi to finish the home, add my name to the mortgage, and use the remaining to purchase another home. Not sure if that’s the best way to go about this but any assistance or advice would be great. Thank you

Benjamin AakerPro Member

Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes

3y

Are your parents on board with having you take over ownership of the property or responsibility for the mortgage? You can pay the mortgage payments without having your name on the document.

If there are other heirs in the mix, getting ownership might prove tricky. You should have a long talk with your parents about it. It really should be whatever their wishes are. They should have a will drawn up already. If not, they should be encouraged to do so. But do it with all heirs knowledgeable of this. It's a great way to have bad blood in the family to do these things in secret.

0 Reply

Doug Spence

Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes

3y

@Abigail Long That's a tough situation.

Have you reached out to a local title company? They should be able to answer your question about being added to the title in Hawaii.

In order to 'take over the mortgage' I believe the mortgage would need to be assumable. Have you already reached out to the mortgage company to ask this question? Your parents might need to do that - I'm not sure if the company will discuss the specifics with you since you're not on the mortgage. If your parents are getting to the point where they are unable to do things like this, I would consider getting a power of attorney so you can legally manage these matters for them.

Good luck!

0 Reply

Abigail Long

OP

Member since 2021 · 3 posts · 0 votes

3y

Quote from @Benjamin Aaker:

Are your parents on board with having you take over ownership of the property or responsibility for the mortgage? You can pay the mortgage payments without having your name on the document.

If there are other heirs in the mix, getting ownership might prove tricky. You should have a long talk with your parents about it. It really should be whatever their wishes are. They should have a will drawn up already. If not, they should be encouraged to do so. But do it with all heirs knowledgeable of this. It's a great way to have bad blood in the family to do these things in secret.

My parents want me to take over that is the reason why I am asking for advice. I have been making payments to the mortgage without my name on the title/mortgage. There are no additional heirs.

0 Reply

Anthony McEvoyPro Member

Investor · Champaign, IL · Member since 2018 · 160 posts · 114 votes

3y

Quote from @Abigail Long:

Quote from @Benjamin Aaker:

Are your parents on board with having you take over ownership of the property or responsibility for the mortgage? You can pay the mortgage payments without having your name on the document.

If there are other heirs in the mix, getting ownership might prove tricky. You should have a long talk with your parents about it. It really should be whatever their wishes are. They should have a will drawn up already. If not, they should be encouraged to do so. But do it with all heirs knowledgeable of this. It's a great way to have bad blood in the family to do these things in secret.

My parents want me to take over that is the reason why I am asking for advice. I have been making payments to the mortgage without my name on the title/mortgage. There are no additional heirs.

A mortgage is contract between the original parties. I don't believe there is a way to just add you to it. Technically, they would have to run the financials on the three of you combined and then determine if you still qualify. You'll also get today's rates (not sure if that would be better or worse). Also, depending on when your parents got the mortgage, they may not be in the same financial situation as before and the bank may not lend to them.

Speak with a real estate attorney in the area in addition to the title company to find out. Its not always easy to be added to the title and not the mortgage. If your parents default on the mortgage but you are also on the title, it makes it more challenging for the lender to foreclose on the house with you still having rights. At least, that is my understanding.

Keep us posted on how it ends up! Good luck.

0 Reply

Benjamin AakerPro Member

Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes

3y

Quote from @Abigail Long:

Quote from @Benjamin Aaker:

Are your parents on board with having you take over ownership of the property or responsibility for the mortgage? You can pay the mortgage payments without having your name on the document.

If there are other heirs in the mix, getting ownership might prove tricky. You should have a long talk with your parents about it. It really should be whatever their wishes are. They should have a will drawn up already. If not, they should be encouraged to do so. But do it with all heirs knowledgeable of this. It's a great way to have bad blood in the family to do these things in secret.

My parents want me to take over that is the reason why I am asking for advice. I have been making payments to the mortgage without my name on the title/mortgage. There are no additional heirs.

In that case, first talk to their bank and discuss your concerns. I'm still not clear on your rationale for taking over the loan rather than just making the monthly payments yourself and make sure their will is in order. Next easiest would be for you to purchase the property from them (for the mortgage amount or whatever you decide is fair), pay whatever they want down - or might not want since there is already equity there, and get a new loan in your name. I think you'll just be adding a headache to everyone if you still want to get your name on the loan. Either way, talk to the bank first.

0 Reply

Lehua Sutterfield

Member since 2022 · 3 posts · 1 vote

3y

Aloha Abigail..... there is a little unknown fannie mae guideline that I point out to the Brokers that I work with with this exact situation... see below

to complete the renovation look for a lender that does a fannie mae home style renovation loan and use the guide below for qualifying purposes

Children wanting to provide housing for parents

If the parent is unable to work or does not have sufficient income to qualify for a mortgage on their own, the child is considered the owner/occupant.

1 Reply

Purchasing family home/add to title/multi family

Purchasing family home/add to title/multi family

Most Popular Reply

6 Replies