How do I get added to my mothers mortgage?
My mother bought a house in 2017 for me to care for her in and then was removed to a nursing home at advanced stage of Alzheimer’s and is still there and fine. My mother had added me to the title and home owners insurance and wrote a letter to the loan company that I was to be added to the loan. The loan company Did not add me and said that they wanted to do a credit check. At first they said they would not need one. But then Covid started and we did that forbearance and now they’re saying they want a credit check. My credit is terrible I admit it and I know I would not be approved. Forbearance was taken out on the house by my mom right before she was going to a home. Now the forbearance is up and they wanna do a modification and send paperwork to me. (They are not aware that she’s in a home. I’ve been too scared to say anything to them.) I would like for the modification to happen because it reduces the payment. They need notarized signatures from her and other documents. I have not received them yet so I’m not sure exactly what. I know that I could handle the mortgage on my own with a roomie. My brother has medical POA and has been looking after her needs since she’s been in a home. him and I do not get along. I don’t think that he cares what happens to the house at all but the thing is he doesn’t care what happens to me either. Yeah great! But regardless I don’t think he would do anything. He did put his name on the loan in regards to just over seeing it but unable to make decisions on it. So I do need these notarized signatures from her and I have no idea how to go about it.I do know for a fact and so did my siblings that my mother wanted me to have the house. Indirectly it was somewhat bought for me because I am also completely deaf and we had put a small dog grooming shop in the detached garage so I would be able to generate income for myself and be self-sufficient. I also do get SSI for my hearing. So really my only question is how do I go about getting the signatures? And is there anyway to give myself security about what’s going to happen after her passing? I do believe my brother will work with me to an extent for his ownDesire to know what’s going to happen. Can anybody help me?
1. When your name was "added to the title", was it done by an attorney, preferably a real estate attorney, and how was it titled: "as joint tenants with rights of survivorship" or some other wording? If it was properly prepared by an attorney, witnessed and recorded, then it presumably would be a valid title transfer, but this is based on assumptions not included in your post.
2. Your name should have been added to the title insurance policy as well, by an amendment. Good thinking of your mother to add your name to the HO insurance. Was your name also added to the tax bills?
3. The only way to add someone's name to a mortgage is by an amendment, but in my experience in real estate law, there always is an amendment to the mortgage, and it's recorded after proper execution and witnessing. Any mortgage company that's good will in fact run a credit check before adding a co-mortgagor, which is what you would then be. And you would have payment obligations as well as all other borrower's obligations as identified in the mortgage.
4. Any mortgage or loan company that doesn't perform a credit check is not a company with which you want to do business.
5. Forbearance is a type of agreement by which a mortgagee (loan company, or bank) agrees not to foreclose a loan which is in default, but establishes (typically) lesser terms to allow the borrower time to work out a solution to cure the default under the mortgage, and bring it current.
It's not surprising that this was done during the pandemic b/c so many people were out of work and probably unable to keep their mortgages current.
6. I'm surprised the mortgage company hasn't just done a credit check; in my experience, it's done automatically.
7. I hate to be the bearer of bad news, but a bad credit rating is a big red flag for any mortgage company. And the fact that your mother is in care outside the home, and likely devoting any funds she has for that care further lowers your chances.
Under these circumstances, it's more likely that the mortgage company would require your mother to be removed completely from the mortgage obligations (unless she's extremely wealthy), and you would be sole mortgagor.
In addition, not having told them of your mother's different living arrangements could be considered under what I've seen as standard defaults (i.e., withholding critical information), and could lower your chances of being sole mortgagor.
8. To rely on a roommate as an inducement for the lender, the roomie would also have to sign a new mortgage, and be obligated for payment just as you would be. In addition, roommates aren't permanent.
9. I don't understand how your brother could "put his name on the loan" but relinquish any decision making rights. I've never heard of "overseeing" a loan. Who drafted this agreement? Was it recorded? Presented to the mortgage company?
This doesn't make any sense, unless there's a side agreement. Or did he sign a Guaranty? If he did, he's obligated if a default occurs.
10. Unfortunately, at this point, your mother's desire for you to inherit the house isn't relevant to the mortgage. There may be a creative way for a good, well qualified real estate attorney to retitle the deed so that she's still an owner but w/o financial obligation for the mortgage, but I'm not sure that's workable.
11. The best security for your desire for the house after your mother passes is through a Will. Does she have one? If not, that's a priority, especially since she's now in care.
Unfortunately, you can't rely on your brother to "work with you". You need more assurance that there won't be family issues clouding title and other issues.
I'm so sorry to be the bearer of such dire and discouraging news, but what you suggested isn't realistic for anyone. I can understand though how much you want to keep your mother's house.
But then its when did Mom added you to the deed. If within 5 years and she is on Medicaid, that is probably voided. Who is financial POA? If there is no one, then the house may not be able to be even sold. I think you may need an elder lawyer to figure this out for you.