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My mom did reverse mortgage on her home. My sister and I are on the title also? We were never told about it. Any thoughts

by Wlslor964 from , California. Sep 4th 2015 Reply


Are you sure you are on title? If you were on title you would have had to sign something for the refinance when they recorded the new Lein.

Sep 4th 2015
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Yes I am on title. I called the county recorders office and they said I was.

Sep 5th 2015
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Patrick Obluck (patrickobluck)
#148 ranked lender in Arizona - 2 contributions

Legally? No. There are very specific rules regarding both title and Reverse Mortgages.If you are on title, you would have to sign a deed removing yourself, before the mortgage could be recorded.You can check with a title company or the county recorders office to see if you are still on title.

Sep 7th 2015
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Larry Gray (lgray_312_247)
#595 ranked lender in California - 1,139 contributions

You were on title before the reverse mortgage loan was completed?

Sep 7th 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

If you were added to the title before the reverse mortgage was take out, then you and your sister would have had to sign which would have taken you off title for the loan to go through and then back on title once it closed.. If the reverse mortgage was taken out before you were added to title, then there was nothing for you to sign acknowledging there was a mortgage on the home.. At this point, it would have been YOUR duty to perform due diligence to determine what you were getting into by being added to title.. What if your mom owed $400K on a home that was only worth $250K.. you wouldn't have wanted to be added to the title then, correct? Typically, there is NO benefit to being added to the title to your parents home regardless of equity position.. Lets say your parents home is worth $250K, and she owes $100K. Once you get added, you effectively (for tax purposes) have been gifted your share (in your scenario, 1/3rd, or $50K). And that becomes your tax basis, and is subject to tax... but when you inherit a home from your parents, you get the benefit of a "Stepped up tax basis" which means that the value at the time you inherit the property is your starting point to determine whether or not you owe taxes.. in other words, if you inherit the home today, then your tax basis is $250K, and you would only owe taxes if you sell it for more than that.. but by being added to the title, you would owe taxes on $50K... Talk to a financial planner for a more detailed explanation regarding your specific scenario, but it might be best if you and your sister removed yourselves from your parents deed, and be sure the property is willed to you... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 8th 2015
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Sara Deere (Saraloveshomeloans)
#39 ranked lender in Kansas - 538 contributions

All people on title of a home in which a reverse mortgage is done, has to sign papers at closing. The ineligible borrower(s) such as children or family members are taken off the title at closing. Only the eligible borrower can be on title during the reverse mortgage. If there is a trust involved, then everything at closing is moved out of the trust, closing papers are signed by the eligible borrower(s) and then put back into a trust.

Sep 8th 2015
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