Can I sell my condo to my wife (not in default or foreclosure) and buy another property on my own?

Asked by Harveydiamond, 19138 Tue Jan 31, 2012

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Riteshseth, Home Buyer, San Diego, CA
Sun Apr 14, 2013
On the similar lines can we sell it to spouse for realizing the tax loss without losing the property by sale? E,g, If we are joint owner right now and then she become a sole owner as buyer (assuming 20% down and she qualifies for financing).
0 votes
Erica Ramus,…, Agent, Pottsville, PA
Tue Jan 31, 2012
Contact an attorney to handle this. I am not sure why you want to sell to your wife only, but an attorney could advise you.
0 votes
Ron Rovtar, Agent, Boulder, CO
Tue Jan 31, 2012
Hi Harveydiamond:

I don't see a problem with selling or transferring the property to your spouse if there are no mortgage restrictions. Only lenders can tell you if you qualify for a loan on another property afterward. However, your current lender should be consulted. You will want to know all the ramifications of proceeding.

It sounds to me as if there is something in particular you want to accomplish (perhaps moving and renting the current property, buying a second home, working out financial details of a separation). The best way to proceed is to talk to some experts such as lenders and your lawyer about your particular situation. There may be better options that you have not considered. For example, if you will convert the condo to an investment property, a lender may look at that property differently than if you were just keeping it as a second home. There are a number or lending programs out there, so it will pay you to explore your particular situation with several lenders so you can choose the best option for you.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
Days: 303.981.1617
Evenings: 303.473.1926
ron@rovtar.com
http://www.rovtar.com
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Tue Jan 31, 2012
Be careful on any due on sale clause in the mortgage on the condo if you owe money on it. ANY change in title could trigger the loan due and payable. Good luck,
0 votes
Alan Openshaw, Mortgage Broker Or Lender, Southampton, PA
Tue Jan 31, 2012
Harvey,

Yes you can do that. However, the lender may ask some questions as to why you are doing this. My suggestion is to come clean with the lender you are working with to see if the deal passes the smell test. If you are trying to buy an investment property but don't want to put 20% down the lender has figured out this "loophole" in their guidelines and will ask for information to make sure that you are doing what you say you are doing. If on the other hand you are seperating the lender wants to see a property settlement agreement in place. Don't try to "beat" the system, be honest about what you are trying to do and let a good mortgage lender tell you if it's feasible.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960
0 votes
Don Tepper, Agent, Burke, VA
Tue Jan 31, 2012
What is your objective? I think you may be constructing scenarios or steps that won't lead you to where you want to go.

Can you sell your condo to your wife? Yes. If she can go out and qualify for financing on her own, she can buy it from you. If you simply want her to have full ownership and you're willing to stay on the mortgage, you can just deed your interest in it to her.

I'm not a lawyer, so this isn't legal advice. For that, you need a lawyer.

Can you buy another property on your own? Probably. State law varies somewhat on types of ownership. But, sure, there's some way that you could purchase a property on your own. You'd have to qualify on your own, though. And the uncertainty is whether--even though your wife would be sole owner of the condo and you'd aim to be sole owner of the other property--whether lenders would see the marriage as a connection between the two of you, requiring some sort of consideration of the other's income, assets, liabilities, etc.

However, there are strategies that could be used. For instance, a land trust might be used to purchase a new property without any immediate involvement from lenders or others.

Check with a lawyer.

But, again, depending on what your ultimate objective is, the strategy you've proposed probably isn't the best one.

Hope that helps.
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