Florida "homestead" and name on deed ?

[Blondie]

My sis is paralyzed and on full disability. Two years ago she sold her house up north and relocated to Palm City, Fla. She could not buy outright (likely would not have qualified for a mortgage) so my brother took out a small mortgage in his name for her and he bought the house but she assumes all payments for everything. She is wondering if, since she is paying high taxes because she is not homesteaded and not listed on the deed, she can have her name added to the deed to get the homestead exemption. It is her primary residence and she pays all the bills, taxes and mortgage. The mortgage is in my brother and his wife's name as is the deed, currently. Thanks for any thoughts on this.

 

[jlwquilter]

Let Your Fingers Do the Walking...

I do not know the answer but if someone calls the various county offices they should be able to get an answer to this.

Someone should call the mortgage company as well and see what their stance is on adding somene to the deed title... in fact, I'd start there. They may not be too keen on someone being a legal owner but not having any legal responsibility to pay on the mortgage. Maybe at this point the mortgage is small enough that the sister would qualify on her own? It's worth asking about.

This may open a can of worms and may be better left alone but... the brother and the wife may be getting some tax breaks themselves by being able to write of the mortgage interest on their taxes, writing off any cost associated with the property (technically it's a rental property for them), etc. offset by the rental income they report (if any). They could return some/all of that net tax savings to the sister - which would at least reduce her total out of pocket and perhaps better reflect the situation. On the other hand, those tax savings to the brother may represent a return on the exposure he does have if the sister should stop paying rent/cost for any reason.

Good luck!

 

[Conan]

Your brother would need to add her name to the deed before she could qualify. Maybe the bank that holds the mortgage would consent if he asked permission to add her as a tenant-in-common with him.

SECTION 6. Homestead exemptions.--
(a) Every person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, or another legally or naturally dependent upon the owner, shall be exempt from taxation thereon, except assessments for special benefits, up to the assessed valuation of twenty-five thousand dollars and, for all levies other than school district levies, on the assessed valuation greater than fifty thousand dollars and up to seventy-five thousand dollars, upon establishment of right thereto in the manner prescribed by law. The real estate may be held by legal or equitable title, by the entireties, jointly, in common, as a condominium, or indirectly by stock ownership or membership representing the owner's or member's proprietary interest in a corporation owning a fee or a leasehold initially in excess of ninety-eight years.

http://www.leg.state.fl.us/Statutes/index.cfm?Mode=Constitution&Submenu=3&Tab=statutes#A07S06http://www.leg.state.fl.us/Statutes/index.cfm?Mode=Constitution&Submenu=3&Tab=statutes#A07S06

 

[Bill4728]

My sis is paralyzed and on full disability. Two years ago she sold her house up north and relocated to Palm City, Fla. She could not buy outright (likely would not have qualified for a mortgage) so my brother took out a small mortgage in his name for her and he bought the house but she assumes all payments for everything. She is wondering if, since she is paying high taxes because she is not homesteaded and not listed on the deed, she can have her name added to the deed to get the homestead exemption. It is her primary residence and she pays all the bills, taxes and mortgage. The mortgage is in my brother and his wife's name as is the deed, currently. Thanks for any thoughts on this.

IMHO, The mortgage should have been in your brother and sisters name. And the title also in both their names. The SIL shouldn't have been on the title or the loan.

Most banks will lend if one of the borrowers have a job and credit even if the other doesn't have a job. We are doing this right now for my daughter who together with my wife is buying her first condo. The loan and title will be in my DW & DD name. (Even though my DD hasn't gotten her first school teacher's job. ) The bank said with a big down payment and my wife's great credit and job, they will have no problem getting the loan even with my DD no credit and job.