Financing in California>Question Details

Diane, Other/Just Looking in California

If my mother puts down 100% of the downpayment on a house, and I make the monthly mortgage payments, am I at

Asked by Diane, California Sat Jul 19, 2008

risk of losing the house if she gets sick and needs to sell her assets to finance end-of-life care?

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7
Diane,

There are two issues here:
1). Does your mom give you the down payment all in cash format? or she get the money from a loan of her own home such as line of credit. If she gets this money from a LOC, she needs to make the payment.
In case she is sill and cannot make the payment then she may have problem. If she has the cash, then there is no problem.

2). If she is on title with you, then you need to see how you two hold the title.
Good luck!
Grace Keng
0 votes Thank Flag Link Mon Jul 21, 2008
Hi Diane,

Are you thinking of reverse mortgage? If the title of the house is in your name she does not have any right. But you may also think of this differently. What if something happens to you? If this money she is giving you is all she has, you have moral obligation to protect her if something happens to you. So my suggestion is to consult an attorney. It hopefully put both of your mind as easy once you have explored all situation with a good attorney.

She is a nice mom!

Sincerely,

Homa
Broker Associate
Prudential California Realty
0 votes Thank Flag Link Mon Jul 21, 2008
If the house is in your name only no. However if that should happen I would "sale the farm" for my family member. Nice of your mother assist you.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
0 votes Thank Flag Link Sat Jul 19, 2008
Most likely the answer is no......but it may depend if she is on title. Seniors have access to legal aid at low or no cost....I would ppose that question to an attorney.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sat Jul 19, 2008
Cindi Hagley, Real Estate Pro in Pleasanton, CA
MVP'08
Contact
If your mother is gifting you the money without taking title, then she would have no legal interest in the home. You can also set up a situation where your mother and yourselves have a specific interest percentage of the home. A situation like the former can be further investigated at a Title office.

Hope this helps.
0 votes Thank Flag Link Sat Jul 19, 2008
Maria,

This is a "what if" question. I would like to set up a situation where I can care for my mother as she ages. It seems like a house with an in-law unit or possibly a duplex makes sense, but my husband and I can't afford it without my mother pitching in. We would make the monthly payments if she gave us enough downpayment to make it feasible, and then she would have a place to stay for her remaining years (which could be up to 20 - she's pretty healthy). But are we at risk of losing our home if she runs out of money for her own medical care - I have heard horror stories about old people being forced to sell their property to qualify for nursing homes with state funding...
0 votes Thank Flag Link Sat Jul 19, 2008
is her name on the title to the house? Did you already purchase, or is this a futuristic "what if" question?
0 votes Thank Flag Link Sat Jul 19, 2008
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