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  • Real Estate - Name on Deed but not on Mortgage

    My parents are buying a piece of real estate and I anticipate being
    pressured into supporting them financially. I do not want to carry a
    mortgage at this point. If I do support them financially, is it
    possible for me to have my name on the deed; without putting my name on
    their join mortgage?

    If so, some details on the procedure and where to find out more info
    will be much appreciated.


  • #2
    Real Estate - Name on Deed but not on Mortgage

    John wrote:
    My parents are buying a piece of real estate and I anticipate being pressured into supporting them financially. I do not want to carry a mortgage at this point. If I do support them financially, is it possible for me to have my name on the deed; without putting my name on their join mortgage?
    You really don't give enough details to get an unambiguous answer.

    You anticipate being "pressured"? Pressured how? Into giving your
    parents money now, to help them buy this property? In that case, and
    if you expect to ever get that back, you are indeed "carrying a
    mortgage" whether you like it or not, as a LENDER not as a borrower.
    If they are also getting a bank loan for the rest of the purchase
    price, you should get a lawyer to protect YOUR interest in the property
    by preparing a properly drafted second mortgage which you can foreclose
    if your parents fail to pay. Your other option, of course, is to
    "just say no" when they ask you for money to buy something frivolous
    that they can't afford and don't really need (which I am assuming it
    is, since you simply call it a "piece of real estate" rather than a
    "new home" or a "retirement condo" or whatever).

    OR do you mean you expect that sometime in the distant future, when
    your now-financially-comfortable parents may turn to you for support in
    their old age, you want to be sure you have some security to get paid
    back the money you are going to put out to support them, such as
    part-ownership of their real estate? I would assume in that case it
    is your _parents'_ turn to "just say no", since what they purchase now
    with their own money is none of your business and whether they have
    enough left over 10 or 20 years from now to pay their own bills, let
    alone give you any inheritance, is also none of your business.
    Again, unless there are lots of pertinent facts you are leaving out.

    If in doubt, and there's real money at stake, pay to consult a local
    real estate lawyer and get the papers properly drafted to accomplish
    what you, and your parents, agree needs to be done. What contract
    lawyers get paid for is thinking of all the "what ifs" that _could_
    happen, and writing the contract to cover the foreseeable
    contingencies. doing this on your own would be taking reckless chances
    that things won't work out the smooth way you anticipate.

    --
    This posting is for discussion purposes, not professional advice.
    Anything you post on this Newsgroup is public information.
    I am not your lawyer, and you are not my client in any specific legal
    matter.
    For confidential professional advice, consult your own lawyer in a
    private communication.
    Mike Jacobs
    LAW OFFICE OF W. MICHAEL JACOBS
    10440 Little Patuxent Pkwy #300
    Columbia, MD 21044
    (tel) 410-740-5685 (fax) 410-740-4300

    Comment


    • #3
      Real Estate - Name on Deed but not on Mortgage

      In article <[email protected]>,
      John <[email protected]> wrote:
      My parents are buying a piece of real estate and I anticipate beingpressured into supporting them financially. I do not want to carry amortgage at this point. If I do support them financially, is itpossible for me to have my name on the deed; without putting my name ontheir join mortgage?
      It's legal, but I suspect you'll have severe difficulty finding a bank
      willing to make the mortgage under those conditions.

      Seth

      Comment


      • #4
        Real Estate - Name on Deed but not on Mortgage

        on 3/6/2006 4:55 AM John said the following:
        My parents are buying a piece of real estate and I anticipate being pressured into supporting them financially.
        What does that mean? That they want you to help pay? How so? Without
        more of an understanding of what you want to do, most answers, including
        the one below, will probably miss the mark.
        I do not want to carry a mortgage at this point. If I do support them financially, is it possible for me to have my name on the deed; without putting my name on their join mortgage?
        Possible yes, problematic, doubly yes.

        If the parents do the loan by themselves, and are the only ones on title
        and the mortgage, then they put you on, that would work. The idea for
        the bank is that your interest in the property is junior to the bank's
        and you can be foreclosed if your parents default.

        I have also seen situations where an owner of the property signs the
        "mortgage", giving the property as security, but does not sign the
        promissory note. If you did this, your interest could be foreclosed,
        but you would not be personally liable and your credit score would not
        be impacted.

        Finding a bank to do this would be a challenge. Smaller banks that are
        writing a portfolio loan would be the best bet. I bet there are FNMA
        rules against this sort of thing.
        If so, some details on the procedure and where to find out more info will be much appreciated.
        Again, more information about what you are trying to do, and someone
        might have an idea for you.

        Jh

        Comment

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