X

See what's happening with home values in more than 400 metropolitan areas with HSH's Home Value Tracker, just updated though the second quarter of 2022.

See what's happening with home values in more than 400 metropolitan areas with HSH's Home Value Tracker, just updated though the second quarter of 2022.

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.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Please enter a question.
Please enter name.
Please enter email.
Captcha code invalid
Q: Should we pay off our mortgage?
SEP 30, 2022
A:

Whether you should pay off your mortgage or not sounds like a simple problem with an easy answer... but it's not.

Read More
Q: How are mortgage interest rates determined?
AUG 18, 2022
A:

Mortgage rates fluctuate from day to day, depending on a number of factors related to the economy and to choices made by investors. While some mortgage money comes from deposits held by banks and credit unions, most of the funds for borrowers come from investors in capital markets.

Read More
Q: Will today's stock market influence tomorrow's mortgage rates?
AUG 16, 2022
A:

Mortgage rates are influenced by a variety of factors, rather than moving in lockstep with any one economic indicator. The stock market rises and falls for a wide variety of reasons, including global, economic and political issues, but as a broad rule of thumb, a rising stock market indicates optimism among investors about the economy.

Read More
Add to Homescreen?
X
X
Install this web app on your phone :tap and then Add to homescreen