Advice Needed - taking over remainder of loan/buying from mom

[Oscar Buendia]

Hello everyone,

Mother in law has a condo in CT with about 37K left to pay on it, nearby similar condos have been appraised at around 90K to 140K. My wife and I are trying to find out the best way to take over the loan or buy the house since her mom has gotten sick and is getting partial disability but cannot cover the mortgage and cost. Currently she is paying $900 mortgage @ 8% APR (bought back in the day and never refinanced). I've ran the numbers and I can get the mortgage with HOA/insurance/taxes to 400-550 with 8K downpayment. What is the best way to get control of the property and save some cost? Could we get her to transfer the home to us and we refinance (f possible avoiding closing costs)?or do we just have to do it through a Real Estate agent? I am pre-approved for the loan amount and if anyone has any advice it would be greatly appreciated. Thank you.

[Chris Mason]

This is the home that mom currently lives in, right? And you're taking it over to provide her with housing?

If so, 3 words: Gift of Equity. 

Go find a local lender familiar with the nuances of gifts of equity AND the "principal residence guidelines apply if..." exceptions for if/when you are providing housing for a disabled/sick/retired parent (which you ARE doing it sounds like, so this isn't being sneaky or fraudulent). You're going to want to layer these two things: the GoE and principal residence exception for disabled parent. These two things together are going to get you the lowest rate possible and keep your funds liquid, without incurring mortgage insurance.

There are tax implications of gifts of equity you should look into, but most folks here would say that keeping as much liquid as possible is a priority for a RE investor. 

Nah, you don't need an agent. Lawyer.