Q. I still have a mortgage but would like to give my house to my daughter. How do I do it? She cannot buy it as her credit is bad. Im 86 and have to do something before I pass away.
A. Have you considered just making a will? Thats the simplest thing.
At any rate, giving the house away is easy. You just have a lawyer draw up a new deed, sign it and have it entered in the public records. Lenders do not usually call in a loan when the transfer is to a family member. You might want to double-check that with your mortgage company ahead of time, though.
I dont know your whole situation or your daughters, so I cant say whether this is a wise step. Before you do anything, talk it over with a lawyer who specializes in estate planning or elder law. You may need to consider possible unintended consequences or make provisions now to avoid future capital gains taxes.
And by the way, Im also 86 years old. Thats even the name of my blog: 86andholding.blogspot.com.
Q. I was browsing county records and found a record stating that my mortgage was discharged over a year ago. I am still paying on it so how can that be? Is it something to do with when we were able to drop the PMI off the monthly bill?
A. Wow thats one I never heard before. I take it you were browsing those records on the Internet?
Dropping private mortgage insurance shouldnt trigger any change in the public records. Perhaps someone at your lenders office did make a mistake at that point. Was that when your PMI payments stopped more than a year ago?
This hardly seems like a problem, though I suppose theres an off chance extra paperwork could be required to clear up the error some day when you sell. You could always contact your lender about it, though I can see that just leading to more confusion.
Or you could have an accountant double-check your figures. Perhaps youve been paying more than you should, and you really have paid off the debt? Not likely, but hey, you never know!
Q. My …