Is my mother buying houses with cash only under my name a good idea?

I haven’t had much experience with real estate because I’m still at an early start in my ‘adult’ life. My mom has been purchasing homes and wanting to put it in my name for marital purposes she is remarried after being a widow and just don’t want to lose all her property in case of a divorce. These houses are bought out with cash so there won’t be any loans in my name, as I am aware of the debt-to-income ratio and how that would negatively affect me later on.

So my question is, would it hurt me to have multiple

houses under my name if no mortgages are taken

out to pay for it?

What are other things to consider when letting her

use my name when buying houses?

Will this be beneficial to me later on when I try to buy

my own house? Like making me look more legit to

the lenders that I already have property?

Thanks in advance

Note all bills to the house is paid for by my mom

Asked on June 9, 2017 under Real Estate Law, Washington

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It could be a serious issue for your later home-buying--and otherwise:
1) Even if your mother is in fact paying, if the homes are in your name, you are the one whom lenders will believe are legally responsible for taxes, utilities, maintenance, etc.--you will appear to have a number of obligations, which will reduce your credit-worthiness.
2) It looks suspicious for someone to have multiple homes bought for cash if they don't themselves have the assets to do this: it may make lenders (or the authorities, if reported to them) think you are laundering money, and refuse to lend or even investigate you.
3) If you mother is already remarried, in the event of a divorce, this will look like exactly what it is: an attempt by her to hide assets from her husband. Not only will it very possibly fail, you will be dragged into her divorce.
4) If someone is injured at the home (e.g. a slip and fall) you, as the person on the title, could be liable.
Don't get involved in your mother's finances or schemes; let her handle her own property herself.


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