How can we transfer title and loan without triggering tax re-evaluation?

Asked by Maggie, South Gate, CA Tue Sep 16, 2008

My parents basically sold their house to my brother and a friend of theirs in 1994. At this time they would like to remove both my brother and their friend from both title and loan and have only my mother as owner. I called the assesors office and was told that if we submitted a form for prop 58 they would not re-evaluate, but because their friend is on title that might trigger a review. My parents are low income and cannot afford an increase in their expenses, can this be done without a change in annual taxes? If a change is required how can I calculate an estimate? Please advise. Any guidance is appreciated.

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Dyanna’s answer
Dyanna, , California
Tue Sep 16, 2008
I have to disagree with Ryan, you need a real estate agent to put the deal together. A lender does not complete a real estate transaction, they complete a loan, if one is needed. This is why you need to speak with someone familiar with South Gate because unlike Utah, where Ryan seems to be from, we do not have anything that would exclude someone from paying taxes.

Dyanna
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Ryan, , Utah
Tue Sep 16, 2008
Oh forgot to mention. If your parents are low income and cant afford the property taxes most counties will give reduced amounts or no payments on the tax assessment. I would have them check into that as well. Once again it would have to be their personal property not an investment.
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Ryan, , Utah
Tue Sep 16, 2008
Okay this sounds like a lender question. They want to remove 2 people from the loan. There is no form that you take to a state that does that. Thats the Lenders call, not yours. The only loan I know of that allows this is FHA. Your parents will have to show they made the payments for the past 6 months and that they live there. Otherwise FHA isnt even an option, assuming the loan is FHA.

To remove anybody from a loan otherwise will require a new loan. To remove them from title all they have to do is sign a quit claim deed and record it at the county recorders. Getting them off the house is easy. Getting them off the loan will require a new one. You dont need a real estate agent, you need a lender.

16 years Mortgage Real Estate Exp
0 votes
Dyanna, , California
Tue Sep 16, 2008
Maggie I have an office in South Gate. Please e-mail me and we can go through all of the paperwork and have things done correctly. Is your mom going to apply for a new loan? There are many aspects to this transfer and things have to be done correctly for the taxes to remain the same.

Good Luck!!
Dyanna
0 votes
Keith Sorem, Agent, Glendale, CA
Tue Sep 16, 2008
Maggie
You need to talk with a couple of people.
First, a Realtor in your area would be helpful. I can recommend one.
Second, a title company (The Realtor can refer you to one).
It's called an non-arm's link transfer, and within certain guidelines you can transfer property.
You might also want to talk with a probate attorney.

Normally a "full value transfer" occurs when a property is sold, or when the title is transferred, at "retail" value. If someone gives a property (sometimes referred to as "quitclaiming") you can transfer without have it being a "full value". However, there are some legal and title issues that can arise so looking ahead to the time when the property IS sold at full value, in the future, you need to do some planning NOW.
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