My mother owns a house in Illinois in the country and has no mortgage or outstanding liens against it except 1 year of taxes that someone someone bought in a tax sale. She was injured in her 30's and now receives disability. With that income, her photography and modeling agency businesses suffering because of COVID, she has not been able to afford taxes on the house. Because of her income and credit scores, she cannot take out any loans or a mortgage on the house to take advantage of the equity in the house.

if she doesn't figure out a way to make sure her taxes get paid on time and get caught up on her back taxes then she'll lose the house.

Proposed Solution:

I proposed to her that we write up a contract that states that I would pay the back taxes, she would Quitclaim deed the house to me, and I could take out around 150k mortgage on it.

I would put 10-15k in an account for cash reserves and use the rest to purchase a rental property. I would put the income from the rental property in the account with the reserves and pay off the mortgage and her utilities for her, so she doesn't have to worry about that anymore.

I believe that this would benefit her and me because the rental property would be in my name and I wouldn't owe anything on it. She wouldn't have to worry about her taxes or utilities anymore and have a place to live.

I would be responsible for any repairs that she would need done obviously.

Things to note:

I can't afford to to just pay her taxes and utilities for her.

I also can't afford to just take out a mortgage on her house and pay that as well. So this was the creative way I thought we could do to benefit us both.

Questions:

1. Has anyone on here done anything like this before?

2. Does this sound logical to you?

3. All opinions welcome. Good and bad. Looking for honest opinions and advice.

Davenport, Iowa

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Quitclaim Deed, Mortgage, and Cash Purchase Rental Property

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