Family transfer of real estate properties

[Mooki]

As to the why questions. My mom is no longer living in the house. So it needs to be either sold or rented out. This is a bad time to sell. House was on the market for 6 months and went through several price reductions and still no buyer. So our thought is to rent it out. Mom owes me $25K and she wants to deed-over portion of the interest/equity of the house to pay me back. If we rent out the house, it will be cash flow neutral after taking into account management, maintenance, and vacancy. If/when the market improves in 10 years we’ll try to sell the house again.

[bearishgurl]

[quote=Mooki]As to the why questions. My mom is no longer living in the house. So it needs to be either sold or rented out. This is a bad time to sell. House was on the market for 6 months and went through several price reductions and still no buyer. So our thought is to rent it out. Mom owes me $25K and she wants to deed-over portion of the interest/equity of the house to pay me back. If we rent out the house, it will be cash flow neutral after taking into account management, maintenance, and vacancy. If/when the market improves in 10 years we’ll try to sell the house again.[/quote]

Mooki, I don’t see how your mom’s bad money mgmt is really your problem. Your mom’s note she signed on this property will never appear on your credit report, even if she gives you a full or partial quitclaim deed. If she owes you $25K, I might let her give me a quitclaim along with her remaining on title but I wouldn’t take title to it alone or get involved in the rental business, since it may only be a break-even situation. If your mom can’t make the payments when the place is intermittently vacant or any PITI/HOA over the rent collected, then you don’t want to be asked or feel obligated to “fill in the gaps” whenever this happens (it could happen often). And you don’t want the hassles of long-distance tenants. Your property mgr there will need to be regularly “fed” to keep everything going and will likely require a 10% montthly mgmt fee, in addition.

Deeding over all or part of her property in this case will NOT “pay you back.” If you take an active role in this property, it could instead cost you $$ and headaches.

From your posts, it sounds like this place is starting to be a hardship on your mom, since she moved out long ago. The $60K “equity” your mom claims to have could just be an illusion. If she truly has this much equity, then she can lower the price further to get enough to pay you and her RE broker off and get out. See if you can talk her into doing this ASAP.

I don’t know how residential RE is faring in GA but in FL, it’s a complete disaster. That’s my .02.

[bearishgurl]

[quote=Mooki]As to the why questions. My mom is no longer living in the house. So it needs to be either sold or rented out. This is a bad time to sell. House was on the market for 6 months and went through several price reductions and still no buyer. So our thought is to rent it out. Mom owes me $25K and she wants to deed-over portion of the interest/equity of the house to pay me back. If we rent out the house, it will be cash flow neutral after taking into account management, maintenance, and vacancy. If/when the market improves in 10 years we’ll try to sell the house again.[/quote]

Mooki, I don’t see how your mom’s bad money mgmt is really your problem. Your mom’s note she signed on this property will never appear on your credit report, even if she gives you a full or partial quitclaim deed. If she owes you $25K, I might let her give me a quitclaim along with her remaining on title but I wouldn’t take title to it alone or get involved in the rental business, since it may only be a break-even situation. If your mom can’t make the payments when the place is intermittently vacant or any PITI/HOA over the rent collected, then you don’t want to be asked or feel obligated to “fill in the gaps” whenever this happens (it could happen often). And you don’t want the hassles of long-distance tenants. Your property mgr there will need to be regularly “fed” to keep everything going and will likely require a 10% montthly mgmt fee, in addition.

Deeding over all or part of her property in this case will NOT “pay you back.” If you take an active role in this property, it could instead cost you $$ and headaches.

From your posts, it sounds like this place is starting to be a hardship on your mom, since she moved out long ago. The $60K “equity” your mom claims to have could just be an illusion. If she truly has this much equity, then she can lower the price further to get enough to pay you and her RE broker off and get out. See if you can talk her into doing this ASAP.

I don’t know how residential RE is faring in GA but in FL, it’s a complete disaster. That’s my .02.

[bearishgurl]

[quote=Mooki]As to the why questions. My mom is no longer living in the house. So it needs to be either sold or rented out. This is a bad time to sell. House was on the market for 6 months and went through several price reductions and still no buyer. So our thought is to rent it out. Mom owes me $25K and she wants to deed-over portion of the interest/equity of the house to pay me back. If we rent out the house, it will be cash flow neutral after taking into account management, maintenance, and vacancy. If/when the market improves in 10 years we’ll try to sell the house again.[/quote]

Mooki, I don’t see how your mom’s bad money mgmt is really your problem. Your mom’s note she signed on this property will never appear on your credit report, even if she gives you a full or partial quitclaim deed. If she owes you $25K, I might let her give me a quitclaim along with her remaining on title but I wouldn’t take title to it alone or get involved in the rental business, since it may only be a break-even situation. If your mom can’t make the payments when the place is intermittently vacant or any PITI/HOA over the rent collected, then you don’t want to be asked or feel obligated to “fill in the gaps” whenever this happens (it could happen often). And you don’t want the hassles of long-distance tenants. Your property mgr there will need to be regularly “fed” to keep everything going and will likely require a 10% montthly mgmt fee, in addition.

Deeding over all or part of her property in this case will NOT “pay you back.” If you take an active role in this property, it could instead cost you $$ and headaches.

From your posts, it sounds like this place is starting to be a hardship on your mom, since she moved out long ago. The $60K “equity” your mom claims to have could just be an illusion. If she truly has this much equity, then she can lower the price further to get enough to pay you and her RE broker off and get out. See if you can talk her into doing this ASAP.

I don’t know how residential RE is faring in GA but in FL, it’s a complete disaster. That’s my .02.

[bearishgurl]

[quote=Mooki]As to the why questions. My mom is no longer living in the house. So it needs to be either sold or rented out. This is a bad time to sell. House was on the market for 6 months and went through several price reductions and still no buyer. So our thought is to rent it out. Mom owes me $25K and she wants to deed-over portion of the interest/equity of the house to pay me back. If we rent out the house, it will be cash flow neutral after taking into account management, maintenance, and vacancy. If/when the market improves in 10 years we’ll try to sell the house again.[/quote]

Mooki, I don’t see how your mom’s bad money mgmt is really your problem. Your mom’s note she signed on this property will never appear on your credit report, even if she gives you a full or partial quitclaim deed. If she owes you $25K, I might let her give me a quitclaim along with her remaining on title but I wouldn’t take title to it alone or get involved in the rental business, since it may only be a break-even situation. If your mom can’t make the payments when the place is intermittently vacant or any PITI/HOA over the rent collected, then you don’t want to be asked or feel obligated to “fill in the gaps” whenever this happens (it could happen often). And you don’t want the hassles of long-distance tenants. Your property mgr there will need to be regularly “fed” to keep everything going and will likely require a 10% montthly mgmt fee, in addition.

Deeding over all or part of her property in this case will NOT “pay you back.” If you take an active role in this property, it could instead cost you $$ and headaches.

From your posts, it sounds like this place is starting to be a hardship on your mom, since she moved out long ago. The $60K “equity” your mom claims to have could just be an illusion. If she truly has this much equity, then she can lower the price further to get enough to pay you and her RE broker off and get out. See if you can talk her into doing this ASAP.

I don’t know how residential RE is faring in GA but in FL, it’s a complete disaster. That’s my .02.

[bearishgurl]

[quote=Mooki]As to the why questions. My mom is no longer living in the house. So it needs to be either sold or rented out. This is a bad time to sell. House was on the market for 6 months and went through several price reductions and still no buyer. So our thought is to rent it out. Mom owes me $25K and she wants to deed-over portion of the interest/equity of the house to pay me back. If we rent out the house, it will be cash flow neutral after taking into account management, maintenance, and vacancy. If/when the market improves in 10 years we’ll try to sell the house again.[/quote]

Mooki, I don’t see how your mom’s bad money mgmt is really your problem. Your mom’s note she signed on this property will never appear on your credit report, even if she gives you a full or partial quitclaim deed. If she owes you $25K, I might let her give me a quitclaim along with her remaining on title but I wouldn’t take title to it alone or get involved in the rental business, since it may only be a break-even situation. If your mom can’t make the payments when the place is intermittently vacant or any PITI/HOA over the rent collected, then you don’t want to be asked or feel obligated to “fill in the gaps” whenever this happens (it could happen often). And you don’t want the hassles of long-distance tenants. Your property mgr there will need to be regularly “fed” to keep everything going and will likely require a 10% montthly mgmt fee, in addition.

Deeding over all or part of her property in this case will NOT “pay you back.” If you take an active role in this property, it could instead cost you $$ and headaches.

From your posts, it sounds like this place is starting to be a hardship on your mom, since she moved out long ago. The $60K “equity” your mom claims to have could just be an illusion. If she truly has this much equity, then she can lower the price further to get enough to pay you and her RE broker off and get out. See if you can talk her into doing this ASAP.

I don’t know how residential RE is faring in GA but in FL, it’s a complete disaster. That’s my .02.

[bearishgurl]

[quote=Mooki]. . . If we do a “deed-over” to have my name added to the deed, what will happen to the house if my mom become bankrupt in the future? I do not plan on that but I am the kind that worries about “what can go wrong”.[/quote]

This is one of the reasons you should not become involved in this property.

[quote-Mooki]I do no own any properties right now but am in the market to buy a house within 6 months. Should I get my own house first before my mom gift the house to me? How will it affect me getting a loan to buy my own house here if I’m on the deed of my mom’s house in Atlanta? . . .[/quote]

I stated before that your mom’s note will never show up on your credit report. When you are in escrow to purchase your property (presumably in CA), you will fill out a “Statement of Information” about yourself with the title company. Even if you are on title with your mom in GA, I would not mention this property on there (or to any lenders I applied for a mtg with) as it will never occur to them to tie your identity in with another state (unless you are a =<7 yr "recent transplant" to CA and "GA" hits show up on your credit report). Even if "GA" hits show up on your credit report, your lender will not likely know you (co-)own another property unless you disclose this. To keep things clean and simple, I would not disclose it. And I would CERTAINLY not try to take full title and mortgage the GA property in my name! This could kill your chances of purchasing a property here.

-This post should not be construed as legal advice and I am not an attorney.–

[bearishgurl]

[quote=Mooki]. . . If we do a “deed-over” to have my name added to the deed, what will happen to the house if my mom become bankrupt in the future? I do not plan on that but I am the kind that worries about “what can go wrong”.[/quote]

This is one of the reasons you should not become involved in this property.

[quote-Mooki]I do no own any properties right now but am in the market to buy a house within 6 months. Should I get my own house first before my mom gift the house to me? How will it affect me getting a loan to buy my own house here if I’m on the deed of my mom’s house in Atlanta? . . .[/quote]

I stated before that your mom’s note will never show up on your credit report. When you are in escrow to purchase your property (presumably in CA), you will fill out a “Statement of Information” about yourself with the title company. Even if you are on title with your mom in GA, I would not mention this property on there (or to any lenders I applied for a mtg with) as it will never occur to them to tie your identity in with another state (unless you are a =<7 yr "recent transplant" to CA and "GA" hits show up on your credit report). Even if "GA" hits show up on your credit report, your lender will not likely know you (co-)own another property unless you disclose this. To keep things clean and simple, I would not disclose it. And I would CERTAINLY not try to take full title and mortgage the GA property in my name! This could kill your chances of purchasing a property here.

-This post should not be construed as legal advice and I am not an attorney.–

[bearishgurl]

[quote=Mooki]. . . If we do a “deed-over” to have my name added to the deed, what will happen to the house if my mom become bankrupt in the future? I do not plan on that but I am the kind that worries about “what can go wrong”.[/quote]

This is one of the reasons you should not become involved in this property.

[quote-Mooki]I do no own any properties right now but am in the market to buy a house within 6 months. Should I get my own house first before my mom gift the house to me? How will it affect me getting a loan to buy my own house here if I’m on the deed of my mom’s house in Atlanta? . . .[/quote]

I stated before that your mom’s note will never show up on your credit report. When you are in escrow to purchase your property (presumably in CA), you will fill out a “Statement of Information” about yourself with the title company. Even if you are on title with your mom in GA, I would not mention this property on there (or to any lenders I applied for a mtg with) as it will never occur to them to tie your identity in with another state (unless you are a =<7 yr "recent transplant" to CA and "GA" hits show up on your credit report). Even if "GA" hits show up on your credit report, your lender will not likely know you (co-)own another property unless you disclose this. To keep things clean and simple, I would not disclose it. And I would CERTAINLY not try to take full title and mortgage the GA property in my name! This could kill your chances of purchasing a property here.

-This post should not be construed as legal advice and I am not an attorney.–

[bearishgurl]

[quote=Mooki]. . . If we do a “deed-over” to have my name added to the deed, what will happen to the house if my mom become bankrupt in the future? I do not plan on that but I am the kind that worries about “what can go wrong”.[/quote]

This is one of the reasons you should not become involved in this property.

[quote-Mooki]I do no own any properties right now but am in the market to buy a house within 6 months. Should I get my own house first before my mom gift the house to me? How will it affect me getting a loan to buy my own house here if I’m on the deed of my mom’s house in Atlanta? . . .[/quote]

I stated before that your mom’s note will never show up on your credit report. When you are in escrow to purchase your property (presumably in CA), you will fill out a “Statement of Information” about yourself with the title company. Even if you are on title with your mom in GA, I would not mention this property on there (or to any lenders I applied for a mtg with) as it will never occur to them to tie your identity in with another state (unless you are a =<7 yr "recent transplant" to CA and "GA" hits show up on your credit report). Even if "GA" hits show up on your credit report, your lender will not likely know you (co-)own another property unless you disclose this. To keep things clean and simple, I would not disclose it. And I would CERTAINLY not try to take full title and mortgage the GA property in my name! This could kill your chances of purchasing a property here.

-This post should not be construed as legal advice and I am not an attorney.–

[bearishgurl]

[quote=Mooki]. . . If we do a “deed-over” to have my name added to the deed, what will happen to the house if my mom become bankrupt in the future? I do not plan on that but I am the kind that worries about “what can go wrong”.[/quote]

This is one of the reasons you should not become involved in this property.

[quote-Mooki]I do no own any properties right now but am in the market to buy a house within 6 months. Should I get my own house first before my mom gift the house to me? How will it affect me getting a loan to buy my own house here if I’m on the deed of my mom’s house in Atlanta? . . .[/quote]

I stated before that your mom’s note will never show up on your credit report. When you are in escrow to purchase your property (presumably in CA), you will fill out a “Statement of Information” about yourself with the title company. Even if you are on title with your mom in GA, I would not mention this property on there (or to any lenders I applied for a mtg with) as it will never occur to them to tie your identity in with another state (unless you are a =<7 yr "recent transplant" to CA and "GA" hits show up on your credit report). Even if "GA" hits show up on your credit report, your lender will not likely know you (co-)own another property unless you disclose this. To keep things clean and simple, I would not disclose it. And I would CERTAINLY not try to take full title and mortgage the GA property in my name! This could kill your chances of purchasing a property here.

-This post should not be construed as legal advice and I am not an attorney.–

[bearishgurl]

[quote=joec]I’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?[/quote]

There is no “gift” here. The equity is unrealized. Sharing title to real property with a family member in the form of a quitclaim deed is not a “gift.”

–This post should not be construed as legal advice and I am not an attorney.-

[bearishgurl]

[quote=joec]I’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?[/quote]

There is no “gift” here. The equity is unrealized. Sharing title to real property with a family member in the form of a quitclaim deed is not a “gift.”

–This post should not be construed as legal advice and I am not an attorney.-

[bearishgurl]

[quote=joec]I’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?[/quote]

There is no “gift” here. The equity is unrealized. Sharing title to real property with a family member in the form of a quitclaim deed is not a “gift.”

–This post should not be construed as legal advice and I am not an attorney.-

[bearishgurl]

[quote=joec]I’ve always wondered, are there gift taxes since the equity is worth over 13k or it’s different for real estate?[/quote]

There is no “gift” here. The equity is unrealized. Sharing title to real property with a family member in the form of a quitclaim deed is not a “gift.”

–This post should not be construed as legal advice and I am not an attorney.-

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