Mom wants to put her house (40k still owed) in my name now. Can I add my name to her morg? Can she Quit Claim it after? Can I lease it to her for tax?

Asked by Brewstrwa, South End, Tacoma, WA Tue Aug 2, 2011

Details? Now you tell me. Ok. Mom is getting older and on a fixed income. I'd like to help her out financially. I'm willing to put my name on her mortgage (40k still owed) and assume payments in case she has difficulty making payments in the future. Can I have her fill out a Quit Claim Deed after my name is added and have her fill out a lease contract so I can make it an investment property? If so, can I also make improvements on the property for her and write it off as business expenses? I asked a bank if I could buy her house and they told me that they'd need 20% down, regardless of how much equity it has. Mom just wants to get rid of the financial burden and I could use the tax break since my own house is nearly paid off. Plus, the added equity should help me with future investment property purchases.

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Dan Tabit, Agent, Issaquah, WA
Tue Aug 2, 2011
First, this is at its heart, a legal question that should be put before your mom’s estate attorney. There are several factors to consider which they would be best to advise you on.
Most mortgage contracts have a due on sale clause that would prevent the home from being transferred into your name, so unless you are advised to purchase it out right, you probably can’t do what you ask.
There are likely other lenders who could find a suitable loan product for you to buy the house under these circumstances, but again, talk to an estate attorney before you go too much further.
2 votes
Megan Paul, Agent, Vancouver, WA
Tue Oct 30, 2012
My question is: Do you have siblings? Is this going to be a problem with them or for them later on? If you do have siblings and they don't care that you are going to perhaps Quit Claim the house out of your mother's estate, I'd get that in writing before it happens.

I just went through something like this. Unless you are an only child, I would get the siblings to sign off on this.
1 vote
I'm an only child. Hurray for me! I bought the house, she pays me rent, the maintenance is a tax write off, and I'm looking for more properties.
Flag Tue Oct 30, 2012
Janice.arcen…, Home Buyer, Tacoma, WA
Thu Aug 11, 2016
my mother put the house that I wanted in her name for me cause of my credit issues at the time. However she has never lived there nor has she ever made a payment since it was bought. Well now I would like to put the house in my name and she wants to as well. So I needed to know how are we able to do that
0 votes
You and probably your mother need to consult an attorney. There could be legal implications for either you, your mother or both.
Flag Thu Aug 11, 2016
find12buy, Both Buyer And Seller, South Prairie, WA
Sat Nov 8, 2014
I am involved with cash investors who buy out a home for cash, they also might do a house swap, or even take over the mortgage. These are various solutions not often made known all the time. But, to find out more feel free to contact me for a value assessment and possible solutions.
0 votes
Brewstrwa, Home Owner, South End, Tacoma, WA
Wed Aug 17, 2011
UPDATE: I went direct with the existing mortgage company. All have to do is fill out a standard loan application and they'd love to add my name to her mortgage. Later, if mom and I wish to drop her name from the deed (Quit Claim Deed) and use the property as an investment property, I'll have to use another company to refinance (which we intended to do anyway), because this company doesn't finance investment properties. I'm cautiously optimistic. Thanks to all for your advice. Feel free to add more.~Bruce
0 votes
..., , Lexington, MA
Wed Aug 3, 2011
If she has an assumable mortgage and you qualify you could take over her existing mortgage.
Adding you to the deed is simple, but she can not be removed from the deed without the mortgage being satisfied (paid off.)
If you purchase the home from her you could use a gift of equity from her to satisfy the down payment requirement. The added equity you may obtain would usually be offset somewhat by the expense of owning the property until you have established a rental history for the property and have positive cash flow after including an allowance for vacancy and maintenance.
What would be in her best interest is legal and financial advice best obtained from professionals in those respective fields who are more familiar with all the specifics and with local laws. She may wish to opt for granting a life estate if that does not negatively impact whatever other goals she may have.
0 votes
Bobbie (Petr…, Agent, Puyallup, WA
Wed Aug 3, 2011
Good afternoon,
The advice to speak to a specialized attorney is the best advice.
Your name could only be added to the mortgage via a refinance or a purchase whereas your name can be added to title via a quit claim. What is important for you to investigate, with the guidance of your attorney, is what is best for your mom's-and your-financial situation long term. Let the attorney know what you are seeking to achieve and he/she should be able to set you on the path that is best for you both.
0 votes
Tonya Brobeck, , Everett, WA
Wed Aug 3, 2011
Most likely you cannot add your name to the mortgage unless you purchase it or assume the loan. You can however put your hame on title. While she's responsible for a mortgage her name can not be quit claimed off the deed.

I would refer to your CPA & a Real Estate attorney
0 votes
Jirius Isaac, Agent, Kenmore, WA
Tue Aug 2, 2011
This is a very complex question to answer online, or even after extensive conversations in person or on the phone.. You should talk to a tax person about all ramifications of anything you might do. She can gift you $11k per year & your wife as well if you are married. she can alos give you a gift of equity in the home for the 20% down payment if you want to buy outright from her at an agreed upon price. I just did this very thing last year with someone in Lake Forest Park & it was about 4 times as much work as normal, but it worked out ok in the end. I would be happy to put you in touch with them as a reference if you let me know. Or, feel free to contact me any time if you want to try & finance it through me.
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0 votes
Kary Krismer, Agent, Renton, WA
Tue Aug 2, 2011
Rather than a real estate attorney, I would suggest an estate tax attorney. Gifting the house to you now could have adverse consequences. But Dan is correct you might trigger a due on sale clause.

Also I would note that improvements are not typically written off, but instead added to the basis and depreciated.

One other option might be a reverse mortgage for your mom, although those are harder to get now.
0 votes
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