Residency Rule for Refinance?

Eva_14

I have been living alone in a small home in California that my parents own for almost 20 years. It was basically a 'gift' from my dad, but my dad's and mom's names are on the title.


My dad recently passed away. For the past year, my dad and mom have been living at an assisted living facility, due to my dad's degenerative illness. Prior to moving to the assisted living facility, my parents sold their own home.


My mom and I recently met with our financial advisor. We do not have a lawyer nor do we want to pay for one.


For my parents' entire 50-year marriage, my dad handled ALL of the finances. My mom doesn't understand anything about our investments, etc. Mom doesn't know what a mutual fund is, she doesn't understand the stock market, etc. I at least have a rudimentary knowledge of investments, which I'm trying to improve upon.


The mortgage on my home is only $85,000. It's at a 7% interest rate, which I feel is way too high. My mom went to the bank and asked to refinance. It looks like we might be able to get a 4.375-4.5% interest rate, which would save us money.


The only hitch is that the lady at the bank asked to see 'utility bills' in my mom or dad's name, to 'prove' residency. Our financial advisor told us it was important for my mom to pretend that the home is her primary residence. Mom still lives at the assisted living place, but she will soon be getting her own apartment.


The problem is that ALL of the utilities are in MY name (I'm the daughter). I've been paying all of my own expenses, except for the mortgage, which my dad always paid.


How should my mom and I proceed? We really do need to refinance to save some money. I personally would not qualify for a mortgage or refinance.


My parents' names are on the title of the home, which I would think would be good enough proof that they own it, but my mom is very concerned about the 'residency requirement'. I really do not understand the rule about 'residency'. My mom doesn't understand anything financial, and she's still grieving the loss of my father. We both are, but it's worse for her, as the wife.


I suggested that we could always have the utility bills changed to my mother's name. Then could we get the refinance?


My mom would also like to leave the home to me, if anything were to happen to her.


I've heard that probate can be very expensive. How can my mom title the house to be left to me, and avoid probate costs? Our financial advisor was unsure, and she advised us to see a lawyer. The problem is that we don't know a lawyer and we probably can't afford one. I've heard Suze Orman say that it's a pretty simple process, if done in the proper way. I doubt we need to pay money to a lawyer, correct?


Thanks so much for any advice re: these two questions. My mom is still reeling from grief and is very emotional. The lady at the bank wants to see utility bills on Monday, and my mom is terrified that she did something wrong. I told my mom NOT to sign anything and to forward the paperwork to me FIRST, but she went ahead and signed on the dotted line AND paid $2,000 for the 'refinance' fees. If for some reason having MY name on the bills voids the deal, we CAN get our money back, right?


Thank you so much for any advice!

torbrex

Eva_14 wrote: »

I have been living alone in a small home in California that my parents own for almost 20 years. It was basically a 'gift' from my dad, but my dad's and mom's names are on the title.


My dad recently passed away. For the past year, my dad and mom have been living at an assisted living facility, due to my dad's degenerative illness. Prior to moving to the assisted living facility, my parents sold their own home.


My mom and I recently met with our financial advisor. We do not have a lawyer nor do we want to pay for one.


For my parents' entire 50-year marriage, my dad handled ALL of the finances. My mom doesn't understand anything about our investments, etc. Mom doesn't know what a mutual fund is, she doesn't understand the stock market, etc. I at least have a rudimentary knowledge of investments, which I'm trying to improve upon.


The mortgage on my home is only $85,000. It's at a 7% interest rate, which I feel is way too high. My mom went to the bank and asked to refinance. It looks like we might be able to get a 4.375-4.5% interest rate, which would save us money.


The only hitch is that the lady at the bank asked to see 'utility bills' in my mom or dad's name, to 'prove' residency. Our financial advisor told us it was important for my mom to pretend that the home is her primary residence. Mom still lives at the assisted living place, but she will soon be getting her own apartment.


The problem is that ALL of the utilities are in MY name (I'm the daughter). I've been paying all of my own expenses, except for the mortgage, which my dad always paid.


How should my mom and I proceed? We really do need to refinance to save some money. I personally would not qualify for a mortgage or refinance.


My parents' names are on the title of the home, which I would think would be good enough proof that they own it, but my mom is very concerned about the 'residency requirement'. I really do not understand the rule about 'residency'. My mom doesn't understand anything financial, and she's still grieving the loss of my father. We both are, but it's worse for her, as the wife.


I suggested that we could always have the utility bills changed to my mother's name. Then could we get the refinance?


My mom would also like to leave the home to me, if anything were to happen to her.


I've heard that probate can be very expensive. How can my mom title the house to be left to me, and avoid probate costs? Our financial advisor was unsure, and she advised us to see a lawyer. The problem is that we don't know a lawyer and we probably can't afford one. I've heard Suze Orman say that it's a pretty simple process, if done in the proper way. I doubt we need to pay money to a lawyer, correct?


Thanks so much for any advice re: these two questions. My mom is still reeling from grief and is very emotional. The lady at the bank wants to see utility bills on Monday, and my mom is terrified that she did something wrong. I told my mom NOT to sign anything and to forward the paperwork to me FIRST, but she went ahead and signed on the dotted line AND paid $2,000 for the 'refinance' fees. If for some reason having MY name on the bills voids the deal, we CAN get our money back, right?


Thank you so much for any advice!

This is primarily a UK site, it will be doubtful if there will be anyone here to advise you on US law.