Mother To Daughter Transfer

[Johnny Knucks]

The property I am working on is a reverse mortgage refi. The mother passed away and the property was inherited by the daughter, and was transferred in the state database. The sale price listed is the amount owed on the mortgage.

I'm having a little difficulty stating this in legalese, and thought someone might have a good or better statement available.

 

[Peter LeQuire]

Maryland may be different - here, the transfer would have been from the estate of the mother to the daughter: the consideration would be the balance of the mortgage. The transfer from the estate to the daughter is not relevant to the present appraisal.

 

[Johnny Knucks]

Maryland may be different - here, the transfer would have been from the estate of the mother to the daughter: the consideration would be the balance of the mortgage. The transfer from the estate to the daughter is not relevant to the present appraisal.

Thanks, I like that better than the gibberish I had.

The prior transfer of subject property was from the estate of the mother to the daughter: the consideration is the balance of the mortgage. The transfer from the estate to the daughter is not relevant to the present appraisal.

 

[Peter LeQuire]

Were I doing such an appraisal here, I would include a copy of the deed by which the property was conveyed to the daughter. Your client, based on your experience with them, may like to see some additional explanation since that transfer is not typical of what they see on a regular basis,

 

[Terrel L. Shields]

I usually would state that the transaction is not an arm's length transaction.

 

[Restrain]

State that title was by inheritance, disclosed consideration being the amount of the outstanding mortgage. Subject was not offered for sale.

 

[CindyR]

a whole bunch of excellent comments are shown above - I also add the disqualifier 'and is not an indicator of market value'

 

[Tom D]

the FHA lender isn't going to go crazy over this transfer. you only need to mention it if it happened recently. for a FHA reverse, FHA pays off the old loan with the new loan. why is there a sale price if she inherited it? now that you would have to explain, the low sale price. normally these things are a "nominal transfer", $1 which makes the whole transaction simple.

 

[Noreen]

the FHA lender isn't going to go crazy over this transfer. you only need to mention it if it happened recently. for a FHA reverse, FHA pays off the old loan with the new loan. why is there a sale price if she inherited it? now that you would have to explain, the low sale price. normally these things are a "nominal transfer", $1 which makes the whole transaction simple.

Tom I suspect it could only transfer for $1 if it were free of liens. Typically the Estate Tax to the State would be based on any "profit" from the sale.

 

[Tom D]

The sale price listed is the amount owed on the mortgage.

estate taxes have nothing to do with that. just like the real estate taxes owed, etc. those are the expenses of the estate for tax purposes only. a nominal transfer cannot be for a zero amount, that's why they normally put $1.
there has to be a consideration for the transfer, (love don't count) so it cannot be $0.. i'm not a lawyer, used to be a broker, but how can you buy a mortgage which you just inherited?

come on knucks, why is there a "sale price". maybe just some bad wording which is messing you up. it should be just a refi.