My mother currently lives in Fx County Virginia. She has no mortgage on her house and would like to get a home equity loan to do some much needed repairs. The problem is that she doesn't have sufficient income to repay the loan. We are considering adding either my sisters or my name to the deed so that we can take out the loan in our names. How difficult is it to change the deed to have our names added and is that a good idea?

Can you do a reverse mortgage in your state? That is where the bank will pay her money each month and then she would get money to do repairs and not have to pay it back. Just a thought.

Hello d:

If she doesn't have sufficient income to repay a loan, how indeed, IS she going to repay the loan, no matter how it is secured? Are YOU or your sister going to pay? Equally? Who is going to inherit the house? Does she have a will? Are there other heirs?

These factors are salient. There are a number of ways to achieve her/your objective, but I would need further information in order to give you an informed answer.

As suggested, a reverse mortgage could certainly do the trick, but it should be noted that she's selling the house to the bank. She's just not delivering it yet. Of course, in that instance, there's no house to inherit...

excon

My sister or I would be paying back whatever loan was taken out. When my mother sells the house (eventually) she will be using the proceeds to purchase a spot in an assisted living community -- no house or assets to inherit so it doesn't matter.

Hello again, d:

Well, that clears things up. Then you or your sister ought to be able to get a loan with your mothers home pledged as collateral.

excon

Talk to a VA RE attorney. This is easy to do... reverse mortgage is the BEST way to do it; otherwise, you two cosign on the HELC.

Hello again d:

A reverse mortgage is an excellent tool. It is, however, designed to fix a particular problem. Unfortunately, it's not the problem you have.

Some older folks used to find themselves in a precarious situation. They've paid off their home, and want to stay, but the home represents the bulk of their net worth. Before reverse mortgages, the only choice people in that situation had, was to sell the house. However, a reverse mortgage pays them an income and allows them to stay in the house till they die.

That isn't your family's problem nor desire. A reverse mortgage will not provide a lump sum of cash, which is what this whole thing is about in the first place. Plus, the bank is going to own her house, and there will be no money to buy her place in the assisted living facility.

Whether she gets the loan and you co-sign or you get the loan because she put her house up as collateral, doesn't make a whole lot of difference. Either way will solve your problem, though. A reverse mortgage will not.

excon

Thanks everyone for your help. It has given me some good ideas.

I am 57, my husband is 73, he wants to pursue a "reverse mtg" can my name be put on deed -