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The Fed cut made no change to rates, but is September still "in play"? See our review of The latest move by the Federal Reserve and what it means for mortgages and more.

Is it mortgage fraud if I add someone to my property's deed or title?

Keith Gumbinger

Q: If I was to receive a gift from my mother to buy a home and to qualify for a mortgage, and then, once I purchased the home, decided to put her on the title, is this mortgage fraud? Or does the fact that they are two separate transactions make it okay? That is, if I choose to put her on the title for the percentage of the home that was covered by her gift, is this okay? I am not paying her back, per se, but rather gifting her in return. I want to know if this is an issue.

A: No, it is not fraud as long as you didn't lie on your mortgage application or provide false documentation.

A number of persons can be listed on the deed or title to a property but not necessarily on the mortgage and this is not that uncommon. For example, an addition to a title can happen when a person owns a home and later gets married. That said, there can be legal and tax ramifications of such an addition, so you'll want to talk to a lawyer and an accountant before you proceed.

Your lender will need to be aware of/agree to this change, you'll likely need an attorney to draw up and file paperwork and a quit-claim deed, and there can be tax implications (since this transfer of interest in the asset is considered a gift). Start with a local real estate attorney, your accountant, contact your lender, and go from there.

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Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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