[winnie0613]

Hello,
Can someone help me about those info below:
Cause I try to save some money for attorney so I can do it self
1. How to add my mom name on the deed
2. If a person holding a power of attorney of mine can that person add my mom's name on my deed
3. Still under mortgage
4. What kind of form: Quitclaim or Warranty deed

Thank you so much

[rockinmommy]

Well, a quit-claim deed is what you'd want. Just be sure to take into account that if your mortgage has a "due on sale" clause (which almost all mortgages have now) they could call the note due. That's not to say they WILL - for a "performing" mortgage (meaning your payments are current) it's usually not even a blip on their radar. But any change in deed gives them the legal RIGHT to call the note due immediately.

[winnie0613]

Hello Rockinmommy,
I have been reading about the info of the deed, isn't the quitclaim just a basic or... not full warranty, sorry cause I keep reading make me confusing.
And about the note due, what's that? Sorry cause my first time and don't really understand.
How about I mansion about the power of attorney to change name?
Thank you so much

[Fr_Chuck]

A power of attorney may sign for you in any and all legal matters that they were given authority to sign for. So it is possible they could sign a new deed to add your mom.

You will want to contact the mortgage company and make sure they give permission to add someone to the mortgage. Since changing ownership may cause some mortages to become payable.

And there is no need to use a warranty deed since you are just adding someone, a quitclaim is all that is needed to merely add someone.

Why would you want someone else to sign for you??

[winnie0613]

Hello Fr_Chuck,
Well, actually that house is my brother and he's not in the states so he gave me a power of attorney to do all works so he wants to add mom's name on it cause she living in that house now.
He just want to add name on the deed not the mortgage, he's the one paying the mortgage so do I still have to contact the mortgage company.
Also on the quitclaim I saw on the web but there is a column said seller so I could leave that blank or... just put the amount 0 dollar cause nothing involve with buying just add name.
Sorry, I know too many question just want to know all info and save some attorney fee.
Thank you so much

[rockinmommy]

Winnie... this stuff is confusing.

What I would recommend doing is contacting a local title company. Tell them what you want to do. They will prepare the deed, make sure everything is filed correctly, etc. It's more expensive than trying to do it yourself, but should be cheaper than having an attorney do it. And that way you'll know it's done right.

The "due on sale" clause is written into almost all mortgages now. It gives the lien holder (bank) the authority to immediately call the note due if you "sell" the property, or there's any change to the deed. What you're wanting to do falls into that category. They see the deed has been added to and they can basically say, "pay the loan off in full, now, or we're foreclosing". Now that doesn't mean they will. I don't personally know anyone who's ever seen it actually happen on a performing note (again, that means that the payments are all current, etc). (And I know A LOT of investors who use all kinds of methods of buying, selling and otherwise dealing in property.)

As FrChuck suggested, you can contact them to let them know what you're doing. If mom has good credit, etc, they may let her be added to the mortgage.

Everything I've ever read or heard basically advises to just do the quit claim and not worry about it. But LEGALLY they could call the note due. I just want to make sure you understand that's one of the unlikely, but possible scenarios.

Not sure I actually understand the value of adding mom. What's wrong with her just living there?

[JudyKayTee]

Hello Fr_Chuck,
Well, actually that house is my brother and he's not in the states so he gave me a power of attorney to do all works so he wants to add mom's name on it cause she living in that house now.
He just want to add name on the deed not the mortgage, he's the one paying the mortgage so do i still have to contact the mortgage company.
Also on the quitclaim i saw on the web but there is a column said seller so i could leave that blank or....just put the amount 0 dollar cause nothing involve with buying just add name.
Sorry, I know too many question just want to know all info and save some attorney fee.
Thank you so much

I don't understand as long as your brother is competent why he doesn't just sign whatever Deed you prepare instead of you signing it with a P/A. A lot of these transactions end up with big problems - he claims you didn't have his permission, it's a limited P/A, who knows.

I wouldn't do this without an Attorney.

And "rocking" makes a very good point - that mortgage could be called in and then your brother would have to get a new mortgage which would probably make him very, very unhappy. And then the fun begins.

[ScottGem]

First, when a company lends money to buy a home they place a lien against the home for the amount of the loan. If the ownership of the property changes hands that could affect their interest in the property. Lets say the property is worth $200Kwith a mortgage balance of $150K. Your brother adds your mom to the deed and she's now half owner. But since she's not on the mortgage, the $150K balance is only applied to your brother's share and that's now, no longer enough to cover the loan balance. That's why the lender may want to call the loan, which means the entire balance comes due immediately.

In addition there is a tax consequence. By adding mom to the deed, your brother is gifting her half the value of the property. Your brother would then have to pay a gift tax on anything over $12K.

so you really need to look more closely at this.

[winnie0613]

Thank you so much for all the advice.
Cause this house is not my brother primary so like an investment but my mom has lived there until now. He wants to add my mom for tax exempt. So he doesn't need to pay a lot of tax while my mom will be the primary living in the house.
That's the point he wants to put my mom name on it.

[ScottGem]

What you seem to be missing is that when you add a person's name to a deed you are, essentially, selling or giving that person the property or a share of it.

I don't know how he thinks he will be saving taxes by doing this. Unless your mom has some sort of senior citizen tax exemption, there wouldn't be any property tax savings. And, even if she does, the gift taxes and other issues might offset any savings.

I think you brother needs to consult a tax specialist or estate planner and rethink this.