Woman Wants Her Mortgage Taken Over
A friend of mine called me this morning with this scenario:
An acquaintance of hers, a woman in her early 70s, mentioned that her friend, also an older woman, had someone take over her mortgage. So that she could live there for free until her death. And this woman is considering doing the same thing. My friend is interested but does not know how to proceed.
The home is in North Phoenix. The woman has owned it for 10-15 years and purchased it for $120k. My friend guesses that it’s worth $250k, (which is a lot of equity to give away).
How would you structure this deal? I was thinking it’s a subject to (with property to be deeded) combined with a lifetime lease. I have a feeling this woman is thinking pay my mortgage and I’ll leave you the house in my will. And I think that could get very sticky!
What do you think?
Thanks in advance.
look out for elder abuse issues here.
As you said giving away 130K is crazy, unless it was a reverse mortgage?