DEAR BOB: How can I add someone to my deed? My property has no mortgage. I want to stay on the deed as well. –Terri B.
DEAR TERRI: Just execute and record a quitclaim deed conveying from yourself to your friend whatever percent interest in the property you wish to convey. Be sure to specify the method of holding title, such as tenants in common, joint tenancy with right of survivorship, partnership, revocable living trust, etc.
Purchase Bob Bruss reports online.
Please be aware that if you select joint tenancy each interest will automatically be equal, such as 50-50. When one joint tenant dies, the survivor owns the entire property. A will has no effect on joint-tenancy property. For details, please consult a local real estate attorney.
FINANCING A MODULAR HOME ON LEASED LAND ISN’T EASY
DEAR BOB: My ex-wife purchased a new modular home in a senior community. She rents the land for $400 per month. I guess the method of buying the home was cash since I am told one cannot get a mortgage for these properties. Is there any way she can unlock her equity tied up in the house? –Richard M.
DEAR RICHARD: Your ex-wife might be able to obtain a personal property loan, such as those available on mobile homes. She should consult a local banker or mortgage lender near her property to learn if she has any finance alternatives.
This situation shows why buying a modular home on leased land usually is not a smart purchase due to the very limited finance choices.
ARE P.M.I. CANCELLATION RULES DIFFERENT FOR RENTALS?
DEAR BOB: I am trying to get PMI (private mortgage insurance) removed from my rental property. Chase Mortgage hired eAppraiseit.com to locate an “authorized” appraiser. That appraisal came in $10,000 less than the value of other identical homes recently sold in the area. I was then told by Chase that because this is a rental property, my loan-to-value ratio needs to be 65 percent, rather than 80 percent for an owner-occupied house. They claim this is Fannie Mae’s rule, not Chase’s. I am told my next step is to authorize another appraisal for $350 if I believe the first appraisal was undervalued. The real estate agent who sold me the home has forwarded recent contracts with sales prices in the range I need to remove the PMI. Is this some kind of a scam or what? –Jonathan C.
DEAR JONATHAN: Mortgages secured by rental property are much higher risk of foreclosure than owner-occupied homes. Presuming your mortgage is now owned by Fannie Mae, I was not aware their guideline for removing PMI on its rental property loans is 65 percent loan-to-value ratio.
You can call Fannie Mae at 1-800-466-3487 and hopefully get referred to the right department for more details.
If you decide to hire another approved appraiser for $350 to reappraise the property, be sure you have details of those recently closed sales prices to hand to the new appraiser.
The new Robert Bruss special report, “Everything You Need to Know About Reverse Mortgage Pros and Cons for Senior Citizen Homeowners,” is now available for $5 from Robert Bruss, 251 Park Road, Burlingame, Calif., 94010, or by credit card at 1-800-736-1736 or instant Internet delivery at www.BobBruss.com. Questions for this column are welcome at either address.
(For more information on Bob Bruss publications, visit his
Real Estate Center).