Currently on deed and mortgage with my mother. How to remove her from both?


I have a question regarding a complicated situation.

My father passed away in 2008 and I have been living with my mother in their house and paying the mortgage on the property since then. In 2009, with the low interests avaiable, we refinanced and at the same time added my name on the deed. Thus the mortgage is under both our names since my mother has poor credit and no income, so the mortgage would have been impossible to obtain without me and I am paying for 100% of the mortgage.

Now she wants to remove her name from the deed and mortgage. I believe the simplest way would be for us to do another refinance, but here is the monkey wrench. I have been laid off since September 2011 and my only income at the moment is unemployment checks. Luckily I had enough rainy day funds to cover the bills for now. I know being unemployed will be a red flag if I try to refi.

So my question is: What can I do to remove my mother from the deed and mortgage?

I am so lost. Any help would be greatly appreciated! Thank you.

2 Answers

You should have no problem completing one of your concerns: transferring the deed into your name. Visit your attorney to have a new deed prepared and transferred, along with the appropriate conveyance forms, or whatever forms apply in your area. I would inform your bank that you intend to make this change. If this is your Mother's primary residence, discuss with an attorney the option of granting her a life estate, or some protection for her should something happen to you, if that is in your plans. As for your other dilema, I agree with your assessment. A refinance with only unemployment income is going to be difficult. It sounds like you would qualify otherwise, as you have been keeping your payments current. I would approach a loan officer at the bank you have the mortgage with presently and see what their policies are for income requirements. If that option fails, try a local community bank in your area that may have a different policy in regards to your source of income. Honestly, though, I think your best option is to work with your present lender, as they are already servicing your loan. Good Luck.

It is highly doubtful that any lender (your current servicer or new one) will qualify you for a refi based on unemployment income as it will not continue for 3 years AND is more than likely not adequate for you to meet debt ratio requirements. You have a better chance of winning the lottery than getting a loan done with only unemployment as income. Please don't get too excited about the possibility of doing anything until you start the new job.