Transferring real estate to daughter


Old 04-04-11, 05:06 PM
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Transferring real estate to daughter

In NH - have a mortgage - Can I transfer ownership to my daughter? If so, what happens legally if I stop paying the mortgage if the original lender is now bankrupt? Have had four servicers on mortgage and only original one is listed in registry of deeds. Thanks!
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Old 04-05-11, 05:00 AM
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I think you should probably consult an attorney on these issues. Just a layman's opinion, but if the mortgage stops being paid, whoever currently holds the note will attempt to foreclose; doesn't matter that they are not the original mortgager. Some people have had success stalling foreclosure by demanding to see original or notorized copies of the original mortgage paperwork which often get lost in the shuffle of selling and reselling mortgages. I'm sure there's legal lingo in the mortgage about the original lender or their successors, something like that, which means the borrower is still on the hook.

Not sure about the ownership transfer, but there are tax implications to that. Among other things a simple transfer would involve your daughter assuming the value at the time of your purchase as her cost basis [thank you, Bruce Williams, for educating me on that point]. In other words, if you bought the house for $100,000 and it's now worth $250,000 (yeah, I know, probably not; my property value has gone down, too) she would take ownership as though she had paid $100,000. Down the line when she sells, that would be the base figure in calculating her gain, so if she sold it for $250,000 there would be a $150,000 capital gain for taxes to be paid on. There are, of course, exemptions that come into play, but you need to know all the angles.

Any lawyers out there to fill in the gaps?

The Tow Guy, not an attorney spokesperson [Figured I would throw that in since the real attorney's always include that in ads and commercials; have never figured out why that has to be specifically said ].
Old 04-05-11, 05:41 AM
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I thought the ads said "a paid spokesperson"

Transferring the deed on property with no lien is pretty straightforward, it gets more complicated when there is a mortgage. Most mortgages state that the mortgage is due and payable when/if the property is transferred........ so a new mortgage will probably be needed. I agree with TG that you should contact an attorney.

I'm neither an attorney or a paid spokesperson

almost forgot welcome to the forums!
Old 04-05-11, 09:27 AM
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I'm old school and prefer to use Dr. McCoy's theme - I'm a doctor, not a lawyer,...

Yes, this is one of those situations where a few hundred bucks on a real estate attorney is going to be money well spent

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