Change of Ownership of Real Estate

[mg170]

Hello everybody

Thank you already for replying to my Message and helping me.

My Question:

My Dad wants to give me his house [it is in his Name now], which he has a Mortgage of about 50k, worth about 120k We both live in that house.
Could he sell me the House for 1 dollar and I would take over the Mortgage and my dad would Co-Sign on it, is that possible?

I assume that is possible but what kind of "legal form" do we have to fill out. What are the steps.

Thanks again and I understand that this Question might be to complex to answer, but I thought I'll try anyway and see.

Marc

[Codythebest]

No need, just quit claim it...
Once the mortgage paid off, you'll get your warranty deed.
Selling it for a dollar and change ownership will not be acceptable for the lender.
Quit claim it and put your name with your dad on the insurance, and you're done...

[tarheit]

Most mortgages are not assumable (read the mortgage contract to see if this is even possible), and many of them require the home to be 'owner occupied' so check the terms of the mortgage.

To protect yourself, get your own mortgage and buy the home for the 50k. This will keep thinks kosher with the mortgage company, and will protect the home from your fathers creditors should he have any financial problems. It will also help establish your credit, and possibly reduce your tax burden should you eventually sell the property for a profit.

-Tim