Mortgage modification underway WAFF
By Jeanie Powell - bio | email
HUNTSVILLE, AL (WAFF) - The Mortgage Modification Conversion Drive has begun.
It's an effort by Housing and Urban Development and President Obama to help homeowners who feel they can't keep their head above water.
One professional said local lenders might begin implementing more loan modification programs, but only time will tell how successful this new campaign will be.
The Treasury Department and HUD have announced their partnership to help borrowers in the trial phase of their modified mortgages under the Obama administration's Home Affordable Modification Program (HAMP), convert to permanent ones.
A government-assisted loan modification is something mortgage advisor Simon Weesner said is difficult to do.
Weesner, of 1st Family Mortgage in Huntsville, said, "I'd say if anyone even attempted to do a loan modification after hitting the brick walls I've heard customers first hand tell me they would hit when attempting to do a loan modification, if they could finance through traditional means they would."
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We have refinanced our home(Alabama)We added our 23 year old to the loan AND the deed.Right choice for child?
In other words, since the child is on the actual mortgage loan and the court deed, child should automatically be entitled to the home without any issues in case of death of parent or parents?...Child did have to sign the same paperwork as parents when the refinance took place. Child also lives at the residence.
Your right, 23 is not a child but is in college. Sorry
The only problem this could cause is if the child actually grows up and moves out on their own. With them on your mortgage they will have a harder time qualifying for a loan.
BTW, 23 is NOT a child! Unless they are still in college they should be in their own home by now.
As far as "in case of death", the "child" owns 1/3 of the property. If there are other heirs they are still entitled to their share of the other 2/3's. The "child" will also still need to come up with funds for any debts against the estate. They do not have to refinance, they can just keep making payments on the mortgage, but if they need to take money out of it to pay for debts they may not qualify to refinance on their own.
If your child gets deep in debt, the creditors could go after the house.
Also, you could have done the same thing by just writing a will that left the house to your child. If you had a will, there wouldn't be any problems at all with your child receiving the house.
Good luck.
This IS risky and it is better done through what is called a Marital Trust, or addressing it in the will - which would have more taxes attached for your son or daughter.
While the chances 'may' be small, if your grown son or daughter were to be sued, the house may be at risk if there isn't a huge umbrella policy on the home to protect you.
Disagreements may shatter a relationship too - if that were to happen, you'd have a difficult time selling unless all three were to agree on the sale.
If something were to happen to you and your husband, the responsibility for keeping the payments on the house current would fall on your child. (Mortgage, Insurance, Taxes, etc.) Can they afford that?
We weighed the pros and cons and decided to do it through a will or estate - though we haven't done so yet. Also look into a durable power of attorney.
FULL of Legal LIABLITIES.
great way to lose the house seriously.
kid could have got the house with a will.
You want a real lawyer to explain what will go wrong with this.
I cannot believe you folks did that!
I hope you have EXCELLENT relations with your child...do you now realize that you child is 30% owner and now has the following powers:
1) You cannot sell or refinance the home without their signature.
2.) As a 30% owner, you child now has the power to go to court, in the event of a breakdown in your relationship, force either the sale of the home or you have to buy him or her out and give them their 30% share of the profits.
You could have accomplished the same task with a life insurance policy to cover the loan and place the home in a living trust....that allows you to skip probate and the home goes directly to the child...that also gives you the power to dissolve the living trust at any time and you don't have to consult with anyone to do it....just file for the proper paperwork.
An estate attorney would have NEVER advised you to take the route you did.
Again, I CANNOT believe you did that...no way would I give a child that kind of power....no matter what their age.
PS: Robert W. is 300% correct...and the same is true, if your child has a car accident or racks up debt, he now has an "asset" to go after and attach liens to...which can leave you two out on the street.
I have to tell you that in the long term it was a bad idea....your short-changed his future benefits.....and his credit......his score will reflect that he has a mortgage and whether or not his income supports carrying such a mortgage.....
A Will would have accomplished the same thing.....or put the house in a Revocable Trust.......
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When will real estate rebound? - The Northwest Florida Daily News When will real estate rebound? It would help people buy homes, and if they refinanced with that rate, the value and the payments would be more in line. That would make people feel better |
