Home Buying in Abington>Question Details

Anna, Other/Just Looking in Abington, PA

is take over of a mortgage easy to do?

Asked by Anna, Abington, PA Wed Oct 21, 2009

been paying mothers mortgage, thinking about taking over

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Hi Anna,
All the anwsers below have good advice and Don is absolutely correct in suggesting that you speak to an accountant or a lawyer. Make sure if you have discussions about transfering ownership to you that you have a title search done on the property to make sure their are no liens on the property.
0 votes Thank Flag Link Thu Oct 22, 2009
No and yes.

As has already been noted, most mortgages in effect today are not assumable. You'd probably have to refinance the property in your name. However, you can always check with the lender. It's possible (though unlikely) that they'd permit it.

However, practically, you've already taken over the mortgage. Why would you want it in your name? Check with an accountant, but I can envision a number of drawbacks and no benefits. The primary drawback is that you'd now be on the hook for the amount of the mortgage, making it more difficult for you to borrow money for any other purpose. If you're looking at the tax benefits, I don't think there'd be any. You have to be the owner of the property to claim tax benefits, either as an owner-occupant or as a landlord. Taking over a mortgage does not transfer ownership.

If you're thinking of doing it for estate planning purposes, check with an estate planner. He/she probably would suggest some other technique, such as placing the home in a trust.

Again, don't do anything until you talk to an accountant or estate planner so that you and your mom can both accomplish what the two of you want.

Hope that helps.
0 votes Thank Flag Link Wed Oct 21, 2009
Don Tepper, Real Estate Pro in Burke, VA
Usually the notes are not assumable. You can try contacting the mortgage company for the details. They would need to run your credit, and may require you be added to title. They won't give a mortgage/lend money to someone who is not considered an owner.
0 votes Thank Flag Link Wed Oct 21, 2009
Only if the note is assumable. Otherwise, you would need to "buyout" your mother.
0 votes Thank Flag Link Wed Oct 21, 2009
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