Quitclaim /full Ownership?
Hi...my father owns the www.house.i make mortgage payment..the existing loan is only $20,000+..
can he do quitclaim to me even when the house is not paid off yet?.
another concern i have is that..He has been on gov't disability for several years, if he quitclaim the property to me. Will the gov't have the right to take away this house from me if he quitclaims this property to me?
i just dont know if i would end up losing the house later once my dad passes away later.
The house is sentimental to me.
But i am concerned about this..thanks.
Da
While he could just give you a QCD to the property now, it might trigger the DOS clause of the mortgage, and also might cause him problems with whatever public or gov. benefits program he's on.
Better talk to a title co. locally and ask them to check and see who has title now, whether there are any liens, what, who, and who needs to do what for you to get good title now.
And you'd want your title now to be subject to his mortgage, so he & you could continue to keep the mtg in his name but have you be the owner without any new liability on your part.
You need to pay an attny a few bucks to review this matter for you.
Since you've already been making the mortgage payments I wouldn't worry a lot about the DOS. Nobody at the Mortgage co. is likely to notice the new deed.
Likewise relative to his existing disability payments. I suppose that these are SSI or some other form of payment which is not means-tested. If so there is no reason Dad cannot convey the house to you. If on the other hand he were to do so and enter a nursing home within some period (I think its 6 months but it might be only 3, it was a long time ago when I sat through this lecture) after that then Medicaid might un-wind the house transaction saying it was done in anticipation of his medicaid application.
The other possibility, of course is for you to buy the house from your Dad for his outstanding mortgage balance and go get yourself a new mortgage
There are specific rules that government programs have regarding person's residence, and what happens if they sell. I would find out what those rules are.
Seems to me that having your father deed the house into a Trust could also be a viable option.
Consult with your attorney on this.
Father would create a Living Trust of which he would be the beneficial owner.
The house would be deeded in to the Trust, and subsequently your father would assign the beneficial Ownership of the Trust to you.
Again, as to the feasibility and proper execution, consult with your attorney.
Hope this helps.
[addsig]
Quit Claim Deeds are weak. In them, there is no guarantee of anything. It's more secure to get a Warranty Deed and get it recorded. Get a title company to pull a title report to see if there are any liens or mortgages and who is on the current deed. If that's clear, get a Warranty Deed. It's pretty simple. You dad, the Grantor, can convey it to you, the Grantee--you'll also need an exemption tax form since there will likely be no money changing hands............good luck