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Selling to Kids |
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Edith, my sister lives in upstate new york in an sfr. She wants to have her son and new bride assume the payments on her house while still "selling" them the house and thus being able to clear some profit for retirement. Is there a way to do this without a conventional mortgage with closing costs and lawyers fees ? Any help is appreciated. |
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It's not clear just what your sister wants to do, but I can tell her one thing for sure: very few mortgages these days can be assumed by the next owner of the property. In most cases the loan must be paid in full when there's a change in ownership.
There's no harm, though, in talking with her lender to explore the matter.
As for closing costs and lawyer's fees -- the kids would be foolish to buy the house without legal assurance that they're receiving clear unclouded title. New York state charges sellers a transfer fee. Someone has to prepare the relevant documents, have them properly signed and acknowleged and recorded. Those costs at least are the ones that come to mind as unavoidable. |
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Edith
Originally published on September 21, 2007 |
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