We have a mortgage on our home, however we both lost our jobs 2 years ago, I have been working through a temp agency for a year however it is not enough for the mortgage. our son moved in with us and he has been paying the mortgage for the last 2 years we would like to transfer the deed to the house to our son, so that he could take out a new mortgage on the house and pay off the mortgage that we have. Can we do this. Or do we have to sell the house to him?
State/Country relating to Question: Wisconsin
I called a mortgage company and I was told that they could not help me because my son was not on the deed, so they could not refinance, and I asked if If my son would buy the house would he still have to come up with a 20% down payment? I was told that according to Gnmay guidelines I could not sell him the house.
Unfortunately, you will actually have to sell him the house. The important thing to remember is that the mortgage company has a lien on the property, and that lien will have to be satisfied before you are allowed to transfer the property. Otherwise, people could easily circumvent a mortgage and a mortgage company would have no recourse.Depending on how much equity you have in the house, here is one possible way of resolving your situation. Assume that you have a house worth $100K with a $80k mortgage left over, meaning you have $20K of equity in your property. You could likely get a line of credit against your home equity, borrow $20k, and then transfer the $20k to your son. Then, your son could obtain a $100k mortgage on the property and put the $20k down, and you could sell the property to him for $100k, which would be enough to satisfy your mortgage and satisfy the $20k Loan you took out against your property. Another option is for your son to approach a bank and inform them of the situation and how the property already has equity built into it.Overall, you may have options, but the mortgage company does not have to agree to work with you and you would be responsible for satisfying the mortgage before you could transfer the property's title.
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