Legal Question in Real Estate Law in Virginia
What is the gifting process for a house?
My husband purchased his parent's home in 1994 before we married. He and his mother are on the deed of the property and mortgage. My husband does not pay the mortgage. His father would like us to ''gift'' the house to him and his mother. I would like to not be legally involved with my in-laws. However...
What are the tax implications in doing so? And how would the mortgage be transferred to his parent's?
His father did not and will not qualify to be on the mortgage. His mother will not qualify to remain on the mortgage as the sole owner of the mortgage. She has been unemployed for years. And his father is in major debt. They have received notice of foreclosure on the mortgage already.
If there are any taxes to be paid, who would pay them? Or would we be better off having my husband remain on the deed and mortgage until they sell the house?
Thank you.
1 Answer from Attorneys
Re: What is the gifting process for a house?
The gifting of real proeprty is normally done through an instrument called a Deed of Gift. However, in the situation you've described, it is probably not feasible since the lender would be unlikely to approve an assumption of the mortgage in the names of the giftees who could not apparently qualify for financing on their own. And, furthermore, if the property is going into foreclosure, all of this discussion is merely academic as this home will most likely soon be owned by some bank or other lending institution.
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