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Profile picture for dianne121

Can I put my home in my mother's name to take out a reverse mortgage?

My husband and I are in out 40's and can't sell our home but need to due to financial problems...we do not qualify for any type of modification. Can I put our home in my mother's name, as she would want to live here too, and then take a reverse mortgage? I have approximately 100,000$ in equity at the moment.

  • March 10 2011 - West Islip
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Answers (11)

Best Answer

good ,morning..
i am curious why if you have $100,000 in equity are you struggling to sell your home.??
if you price it correctly according to current market value it should sell..
what are you looking to do with the money received with a reverse mortgage..?
Lisa
  • March 10 2011
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Profile picture for dshaferb33
You Could put the home in your mom's name and you and your husband would both have to come off title BUT even at that point your mother would have to wait 12 months to qualify for a Reverse Mortgage....The most important question is....What happens to you and your husband when your mother (God forbid) passes or has to leave the home for an extended period of time?  The loan then becomes due and payable.  You and your husband would have the option of purchasing the home from the bank at the cost of the Loan + a heafty interest rate or choose to sell (likely with no profit to pocket).....I am a RMS, please consider other options before making this type of decision. 
If you don't care what happens to your family.....give me a call in about a year!
  • March 11 2011
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pretty sure you'd have to sell it to your mother, season her on title, then try the reverse.  Can you do anything to work on getting that 2% difference in your DTI handled for a refinance? If your mom moved in and became a co-borrower, FHA will allow cash out to 85%, which might free some of that equity up... remember that equity only counts when you sell the house, til then its just a guess.
  • March 11 2011
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It's not clear if the property would even qualify for a reverse mortgage, need to know what is owed and the value. If the equity would allow for a reverse, my guess is that you would then have a title seasoning issue to overcome.
  • March 10 2011
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Profile picture for Connie Klemme

The problem I see is that the reverse mortgage is for your mother, this means if your mother leaves, or passes away, you have no where to live, the "payment" to the reverse mortgage is that home. I assume you plan to outlive your mother and wish to stay in this home beyond that time. While we don't want to sit and think about losing our parents, in this case you'd be losing your home right after losing your mother- the worse possible time to be dealing with such things.

 if you mother can assist with the payments and is willing to do so...go that route.  Or look for other creative methods... or...selling it might be best.  If you are in over your head, it's better to get out peacefully with a sale and into another, cheaper home  than to lose it and destroy your credit.

  • March 10 2011
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Profile picture for wetdawgs

It is clear you are trying to think creatively, and want to stay in your home.  If your mother wishes to live with you (and the entire family agrees enthusiastically) perhaps she can contribute to the household income.

So, if the dream of staying in the house for the next few years is not financially realistic, you will do far better making the decisions now to sell rather than let the drain grab you.

  • March 10 2011
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How much do you owe between the 1st and 2nd, and how much is the home worth?
  • March 10 2011
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Profile picture for dianne121
Ok..well..actually it's not on the market..but I see all these other houses just sitting...nicer houses than mine...the 100k might be over stating ...maybe 75k or so..And ..quite honestly i really would like to stay in this house for another few years but our first, second mortgages along with our property taxes , utilities have just become too much to handle..AND my daughter will be starting college. We were told we don't qualify for modifications because our GROSS income (do you live on your GROSS income????) to housing ratio is , like 2% too low !! So we're basically circling the drain, so to speak financially!
  • March 10 2011
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The mortgage loan would have to be in your mother's name.

Happy funding, Rudi
  • March 10 2011
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Profile picture for wetdawgs
The first thing to do, is to make sure your house is in top form and priced right so you can indeed sell it.  
  • March 10 2011
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A) If you have 100k in equity, why can't you sell it?
B) If you have 100K in equity, why do you need a modification? 
C) Why do you hate your mother?
  • March 10 2011
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