15 years ago I bought a house. At that time I required my mother to co-sign for me because my income and credit history were not sufficient to merit me getting the house alone. Now my mother is in a lot of financial trouble and could face bankruptsy (due to getting over extended in real estate during the boom). I am very concerned that her being on the deed to my house will mean that it is one of her assets and all of the equity I have built up (a very significant amount) could be lost. I would like to get her off the deed, but am unsure how to do this and also wonder about any other implications (gift taxes... ). Please advise. Thanks!

First, you have to get permission from the lender. Changing ownership of a property may trigger the due on sale clause of the mortgage. However, in this case I think they might be agreeable since it will protect their interest.

The other issue is she may have to sell her interest to you. Still another issue is that bankruptcy may look at assets that go back a few years to see if they are being hidden.

Your best bet it to get a Real Estate Attorney to advise you of the best way to handle this.

Thanks.
I'm the only person on the mortgage deed.

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Originally Posted by DBSherwood

Thanks.
I'm the only person on the mortgage deed.

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Um that doesn't make sense. A mortgage is a loan generally uses to purchase property. Usually the lender wants all owners to sign the mortgage to protect their investment. If your mother was required to cosign for you then she would have signed the mortgage, but not necessarily be on the deed. The deed is a statement of ownership of a property.

So you need to clarify. How is title listed on the deed? Who signed the mortgage. How you proceed depends on the EXACT answers to those questions.

Did you refi at some time without mom ? You stated, you needed her when you got your loan, so she would have been listed on the mortgage.

So she has to be off the mortgage.

Then you have the current lenders permission to change the deed, and have a new one made, mom signs her ownership over to you)

I have refinanced 2 or 3 times in the past 15 years that I've owned the house (just for a better interest rate, not to take any money out). Since my income is sufficient, it wasn't necessary to have my mother on the mortgage any longer. But, she was never removed off the deed and was originally on both.

OK, the lender should not care , but you need to clear it with them, and then merely have mom sign over a new deed to you

I'm surprised the lender didn't require she be taken off the deed when you refinanced.

I still suggest having an attorney or, at least, a title insurer, prepare the new deed.