Should i sign on to the deed to help pay parents mortgage or they do a reverse or refi?

A Reverse Mortgage cannot be done until the age of 62. If they are able to qualify for a refinance that would be the solution. If you choose to add yourself to the loan and title that may be a solution to estate items in the future. If there is a Family Trust in place the step may not be necessary.To answer your HARP question. If the loan i a FNMA or FHLMC and in place prior to June 2009 it may be eligible for the HARP. You would use the HARP loan if the home is upside down to value and for no other reason. If it is not upside down, you would look to refinance traditionally.You can add yourself on Title and make the payments and even claim the write-off, but at that interest rate, I would refinance.Please contact me directly at 805.530.1199Michael A. HarrisUnited Mortgage Corporation of America | CEO

Matt I would suggest looking at a reverse mortgage. Since your parents are not in a place to do a traditional refinance and you don't need another debt I would suggest talking with someone in California.One of the great advantages of a HECM or Reverse Mortgage is to take away the pressure or a monthly mortgage payment. As far as your inheritance your parents will always own the house and they can leave a It to you if they desire.I am not Licensed in California. I am a broker who can choose any company and I like AAG the best. They are the company that has Fred Thompson as their spokesman. If I can help answer questions or connect you with somone please let me know. By the way I helped my parents get a Reverse Mortgage.Merry Christmas. Mark

Hi Matt,a reverse mortgage can only be competed if both of your parents are 62 years or older. If you want to inherit the property, then a reverse mortgage is not the way to go. Since the loan amount is too small to refinance, consider adding your name to the title to protect your future inheritance of the property.

Yes, they can refinance again under HARP if the current mortgage was prior to 6/1/2009 but with a 30,000 mortgage they may not see a huge savings - unless they have a very short term mortgage now. The difference in payment between 7% and even less than 4% probably won't be much unless they go from a short term mortgage 10-15 years to a 20-30 yr loan. Also, they probably have equity in the home so they should be able to refinance without HARP as long as they qualify for any new mortgage. If their only income is unemployment that isn't considered stable income. YOU can help them with payments at any time and if you are going to inherit the house that might make sense, and you could even be added to the mortgage under a refinance. All of you would need acceptable credit and DTI would be a consideration. Before adding you to the title it would be worth checking with a real estate attorney or title company to make sure there are no negatives - like them not qualifying for an "elderly" discount on property taxes in a few years (if offered there). Another idea might be for them to add other debts to a new mortgage and reduce their monthly payments until they are employed. Hope this helps.

Lot of advice... lot of options. Assuming they really are going to give you the house, I'd quit claim the house into your name, then refinance it in just your name, and you make all the payments - as it would be your house too.

Matt, if you are considering purchasing a home in your own name, being added to this mortgage would definitely affect your DTI and potentially your ability to qualify for your own mortgage. It might be preferable to wait until after you purchase. If you are in a position to help them make the mortgage payments that will help keep them from possibly loosing the house. In some cases I've had customers where they wrote the check directly to the mortgage company rather than giving cash directly to family and not being certain how it was spent.