Parents Deeding Property To Me After I Refi NOO Stated Income And NO Seasoning?
My parents are elderly and need cash to purchase a mobile home . They want me to buy the house, but instead of going thru a P&S and red tape, They want me to do a cash out refi. where they will deed over the property to me and get the cash they need to buy the mobile home ( they do not have a mortgage). I do not want to move there so it will be Non owner. I need to go stated and they want me to this now. Can this be done?
tyvalence
Glad to meet you.
The correct procedure for asset protection would be as follows regarding your personal residence.
Purchase the property in your own name, after the property is recorded in your name, contact your lender for the proper paperwork to transfer your property into a Living Trust. This way you will have the deed and mortgage in the trust’s name, after the lender approves your submission for a Living Trust. You might also check to see if this can be accomplished when you purchase the property.
I would recommend the following book, which most likely is available at your local library.
"The Living Trust, by Henry Abts III . . . explains how a trust protects assets while you are alive, then passes them on."
If you transfer your property into an LLC you then fall under a portion of the Garn - St Germain Depository Institutions Act of 1982, which can put your personal property at risk of having the loan called on the property.
By transferring your property to a Living Trust you would still have what you are trying to accomplish, however it would be done according to the U.S. Code.
TITLE 12 > CHAPTER 13 > § 1701j–3
§ 1701j–3. Preemption of due-on-sale prohibitions
(d) Exemption of specified transfers or dispositions
(8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property;
John $Cash$ Locke
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