Hey, I am really new to this real-estate thing and I had a few questions that I cant seem to answer. Any help would be much appreciated.

My father is not doing so well and is looking to sell me his home. I know by researching that I have a few options (gifting, making monthly payments to him...etc). Now my dad refinanced a few times on the home and owe's about 400 thousand. Now my question is...

1. If my dad gifts me the house, do I continue to pay the same mortgage and owe the 400,000 on the home that he owes?
2. If I buy it from my dad, is the lowest I can buy the house for 400,000.


Sorry I know these are stupid questions, but I guess we all got to start somewhere.

I'd imagine someone (even in California) can only "gift" you that which they own. He doesn't really own the house you're talking about, and won't, until that $400,000 is paid off.
If you want it free and clear of all encumbrances, that would be about right, PLUS closing costs.

It's dangerous to start servicing the bills of another person because that can be interepreted legally as also sharing the responsibility, and that would not be wise without first consulting an Attorney.

But I'm 3000 miles away, so I'll suggest you wait to get an opinion from someone else in California.

Thank you for your reply, I figured the gifting wouldn't work because he does not own it strait out. I am assuming that the 400,000 (market value is around 550 or so) needs to get paid somehow, so that is going to be the cheapest I could buy the house for. Anyone know if that is the case for sure in CA?

If you were to purchase the home and have it in your name, would you be able to obtain financing for the $400K?

Go ask the Bank that currently holds the Mortgage. See if they'll talk to you, given your Father's circumstances and the current market conditions . . . . or use an Attorney as an emissary.

This is very sound advice by Vermont. Go speak directly with the note holder to see what/if they are willing to do...