Legal Question in Real Estate Law in New Jersey

removal of names on deed

My son & daughter's names are on the deed of a home that their father & I owned before our divorce 29 years ago. Their father has remained in the home since that time. He now wants to get a reverse mortgage & is asking the children to remove their names from the deed because no one under the age of 62 can be on the deed for the reverse mortgage. They are entitled to 50% of the house right now. (house was appraised at $450,000) If they were to remove their names, how else can they keep their share of the house? Are there other legal documents that would ensure they would keep their share of the home?


Asked on 9/28/08, 8:47 am

1 Answer from Attorneys
Carter Ferrington Bar Adon Vogel PLLC

Re: removal of names on deed

Your children are being asked to forego a 50% interest in the house and allow an ever-increasing debt to attach to the deed for the home. Assuming that the stated value of $450,000 is correct for the home, this interest would currently be valued at $225,000. The best solution would be for them to sell the interest in the home to their father for $225,000.00. Another option would be to exchange the interest for a note for $225,000, but the ballooning debt caused by the reverse mortgage could cause problems in the future for their interest, even if such debt would be allowed with a reverse mortgage. A likely scenario would involve the children selling their interest to the father in exchange for a note for $225,000, which would then be paid off from the proceeds of the reverse mortgage.

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Answered on 9/29/08, 11:41 am


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