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  1. #1
    chrissy63078 is offline Junior Member
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    Can I sell my house to a family member and avoid costs

    What is the name of your state (only U.S. law)? Pennsylvania. I would like to sell my house to my mother for what I owe on the mortgage. I would not be making a profit and would like to avoid paying Real Estate commisions. Can you advise what process or steps I should take to make this sell take place.
  2. #2
    OHRoadwarrior is offline Senior Member
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    Contact a real estate attorney and have him draw up the paperwork. I bought mine in a similar manner. She will want title insurance also, I would guess.
  3. #3
    chrissy63078 is offline Junior Member
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    Did you have to pay for closing costs or out of pocket expenses.
  4. #4
    justalayman is offline Senior Member
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    Quote Originally Posted by chrissy63078 View Post
    Did you have to pay for closing costs or out of pocket expenses.

    somebody has to pay closing costs. There are certain costs that are costs no matter how you sell a house. Your mother can pay the closing costs if she is willing. If not, you will have to pay them.

    Is she paying cash? If not, her lender will likely require certain items as well such as lenders title insurance, an appraisal, and possibly a survey.
  5. #5
    OHRoadwarrior is offline Senior Member
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    Closing costs are what is required by the loan originator. I would seek a lender that waives them for her new loan. She will incur costs for sales tax, appraisal, attorney fee and title insurance. She can waive the elaborate sales agreement as to what will stay and what will go, if she trusts you will not play games on things. this can simplify the agreement and lower attorney fee.
  6. #6
    chrissy63078 is offline Junior Member
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    I owe $128,000 on my Mortgage the house is valued at $150,000. I just want to sell to my Mom for what I owe on the Mortgage (no profit). Should I get in touch with a Real Estate lawyer? I tried to contact my Mortgaget co just to have them essentially transfer the mortgaget into my Mom's name, but they don't do that. They told me to contact a title company to do everything. I called the title company. I just want to do this transaction without having to pay unessessary fees. I understand having to pay for fees like taxes, insurance, appraisal, etc... I just don't want ridiculous fees to someone just so they can make some money.
  7. #7
    xylene is offline Senior Member
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    By alues at 150K i assume you mean you bought it at that...

    Quote Originally Posted by chrissy63078 View Post
    I owe $128,000 on my Mortgage the house is valued at $150,000. I just want to sell to my Mom for what I owe on the Mortgage (no profit).
    That is not "no profit" - that is a 22,000k loss.
  8. #8
    chrissy63078 is offline Junior Member
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    I understand that it is technically a $22K loss, however my Mom will be getting the equity and not a stranger. I currently have it on the market with Howard Hanna for $139,000 and I have not had any luck. If I were to sell with a real estate agent I would be paying $10,000 in commision fees and after all is said and done I might end up with $1,000 after the sale. I would rather my Mom get the profit on the house than a total stranger.
  9. #9
    chrissy63078 is offline Junior Member
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    Quote Originally Posted by xylene View Post
    That is not "no profit" - that is a 22,000k loss.
    I have owned the home for 12 years. The appraised value is $150,000.
  10. #10
    PattyTN is offline Junior Member
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    Is your mom going to pay in cash? $150,000 is not a ton of money.
  11. #11
    chrissy63078 is offline Junior Member
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    Quote Originally Posted by PattyTN View Post
    Is your mom going to pay in cash? $150,000 is not a ton of money.
    She will not be paying cash. I will need to help her obtain an FHA loan. So that she will not have to put up a large down payment.
  12. #12
    justalayman is offline Senior Member
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    Quote Originally Posted by chrissy63078 View Post
    She will not be paying cash. I will need to help her obtain an FHA loan. So that she will not have to put up a large down payment.
    then somebody is going to have to pay (most likely) appraisal fees, possibly survey fees, document fees, recording fees, transfer taxes, any fee the closing agency might charge, inspection fees (for FHA), and maybe a few others.

    You will avoid the big one though: real estate agent fees.
  13. #13
    nextwife is offline Senior Member
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    [QUOTE=OHRoadwarrior;2829689]Closing costs are what is required by the loan originator. QUOTE]

    For clarification, even sellers whose buyers are paying cash incur assorted closing costs.

    Transfer Tax, seller side municipal letters for proration, seller doc prep (deed, transfer return, if any, recording fees for any releases, any municipal code inspections that may be required before transfer, as examples. In my market, the seller also provides the owner's policy in the majority of transactions as well. Well and/or septic inspection, clearwater inspections and so on.
    Last edited by nextwife; 06-06-2011 at 06:29 PM.
  14. #14
    Ozark_Sophist is offline Senior Member
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    Quote Originally Posted by justalayman View Post
    then somebody is going to have to pay (most likely) appraisal fees, possibly survey fees, document fees, recording fees, transfer taxes, any fee the closing agency might charge, inspection fees (for FHA), and maybe a few others.

    You will avoid the big one though: real estate agent fees.
    I question if OP can avoid real estate agent fees--especially if a contract is still in effect.
  15. #15
    justalayman is offline Senior Member
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    Quote Originally Posted by Ozark_Sophist View Post
    I question if OP can avoid real estate agent fees--especially if a contract is still in effect.
    what contract? Did I miss something?

    yes I did

    I currently have it on the market with Howard Hanna for $139,000
    Sorry Chrissy. Unless your contract specifically exempts relatives, if you sell the house to your mother you will owe a commission. There is more than likely a period of time after the contract expires that should you sell to your mother, you will still owe a commission.

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