Home Buying in Webster>Question Details

Jodie, Both Buyer and Seller in Webster, NY

We would like to buy a house with an in-law apartment for my mother. How do we sell our house and my mother's house so that the equity of both?

Asked by Jodie, Webster, NY Sun Jul 18, 2010

can be applied to one new house? Do my husband, my mother, and I all have to be on the new mortgage? We would prefer just my husband and I be the new mortgage holders.

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Michael Walker’s answer
It's been some time ... Did you get all of your questions answered to your satisfaction? If you are still looking for some answers, please don't hesitate to contact me. I'm an active agent in the Rochester area and specialize in Webster and would be happy to further discuss your needs and get you the real numbers that you are looking for.

I can be reached at 585-721-9857.

Michael Walker
Keller Williams Realty
Web Reference: http://MikeWalkerHomes.com
0 votes Thank Flag Link Wed Sep 29, 2010
Always consult with your attorney and accountant regarding the legal aspects of your question. There are several optons that would probably work, but each needs to be reviewed considering your unique needs. Consider all options and select the one that best suits your individual situation. Then start the real estate process. Your realtor can provide a market analysis for both properties to determine current market value, and what price range to consider for the new home. Talk with your lender for mortgage options, and start your home search.. It's never too early to start looking, getting ideas and determining what in-law set up would work best for you and your mother.
0 votes Thank Flag Link Sun Jul 18, 2010
There are a couple of possible approaches: 1) put both houses on the market, wait until they both sell and then use the amount remaining after paying off any outstanding loans/mortgages to purchase another home. If you use the funds from your mom's sale to help purchase your home without her being on the title and/or loan, the bank will probably require some form of gift letter from her to you for those funds. 2) You could also take equity lines of credit out on both houses - before listing the properties for sale - and then also use funds for down payments on the new house. As one of the other responders mentioned, if there are siblings and/or other family members that may have an interest in your mom's property, that may also get sticky. I would consult an attorney for the best way to structure the deal so that both your mom and you are protected as well as properly delineating how funds will be used. Good luck.

Ralph Windschuh
Century 21 Princeton Properties
0 votes Thank Flag Link Sun Jul 18, 2010
Is your mother going to be on title? Also - if you have any siblings, it is essential that you have a partnership agreement drawn up, in addition to your mother's will, so that at the end of her life - regardless of how far into the future that is - the sibs (and their families) and you can avoid a costly and protracted legal battle.
0 votes Thank Flag Link Sun Jul 18, 2010
Check with a lawyer and an accountant. I'm neither, so this is neither legal nor accounting advice.

However . . .

Your mother does not have to be on the new mortgage. If you and your husband qualify, then the two of you would purchase the property. Your mother would be a tenant in your property. However, that's also something to discuss with her. Would she be willing to go from a home owner to a tenant?

As for how to handle the equity in the two properties, check with an accountant. The main hurdle is how to transfer your mother's equity to you--presumably as a gift--while minimizing any taxes. There may be other ways, as well. But you have to look into that before you take any steps regarding sale of the properties or purchase of a new one.

Hope that helps.
0 votes Thank Flag Link Sun Jul 18, 2010
Don Tepper, Real Estate Pro in Burke, VA
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