Legal Question in Real Estate Law in New Jersey

Re: Can I buy a percentage of my parents house?

When there is a mortgage on property, the owners may not change legal title in any way without the written consent of the mortgage holder. If legal title is changed without such consent, the mortgage would be in default and the mortgage holder could require that the entire balance due be paid immediately.

The mortgage holder also may not agree to your putting a second mortgage on the property [if you get a mortgage of up to $190,000 to buy an interest.]

You do not mention why you would become only a 40% owner when you are paying almost 48% of the balance owed.

For you to "buy" an interest in your parents' home, you would first need that written consent of the mortgage holder. It may require that the money you pay to your parents be used to pay off a part of the mortgage equal to your payment to your parents.

Each mortgage holder may have different requirements about how this transaction would be accomplished.

The best route may be to refinance the home, with your parents and you as owners, and also with all three of you as borrowers on a new mortgage. The current market value of the property will affect how much and if a mortgage company would be willing to lend.

If your parents would qualify as borrowers, you may want to explore this option.