Home, Land, Property Buying and Selling - Title transfer? Quit Deed? HELP!!!

Hello, Heres the deal ( I'll try to keep it short).
Almost 6 yrs ago, do to health problems and age my parents could no longer afford their mortgage,bills and home maintainance. My husband and I co owned a new mobile home with my cousin. We tried everything to combine the finances and ownership of both our home and my parents, we were denied loans ect. I NEVER wanted to take over my parents home without my name on the title. But here we are.
They refinanced there home made one payment and moved into town with dads mom called and told us to move in they cant do it any more.
For almost 6 years we have made the mortgage payment and lived in the home, made thousands of dollors in repairs and paid all taxes.
My dad passed away last March and EVERYONE is bugging us to get the house in our name.
US Bank carries the loan they told us if my parents pass away We would have to apply for a loan and buy the house like anyone else would.
So Am I correct that the only thing that can be done is to be willed the equity or the first option to buy? So If my mom dies and we cannot qualify for a loan we dont get the house?
Again EVERYONE (well meaning friends and family) say that since we have made all the mortgage payments, pay property tax and live here we can keep the house if she wills it and just keep on paying the mortgage and/ or the morgage company will just jump to give us a loan. We wont get a loan in the next few years. Oh and we write a check to our mom and deposit it into an account in her name that the mortgage comes out of so noone realy knows we pay it anyway.
Help how can we keep this house? Thanks Kim

You should be getting some pro's along to answer the bulk of your questions, but I'll thow in a wrinkle. You haven't been taking a mortgage interest deduction on your 1040, right? Won't matter if you don't itemize, but if you do and you take a mortgage interest deduction for a loan that is not in your name (i.e. that you are not legally obligated to pay) you could be in trouble with the IRS.

Until better answers come along, two things you need to know; (1) How exactly is the title on the property held, i.e. tenants in common, joint tenancy with right of survivorship, etc. and (2) the exact terms of the loan, for instance is the loan assumeable.

IMHO you would not be able to take title to the property with the existing loan on it. Try to compare this to selling your car if it had a lien against it from a finance company. Same basic principle. Not a finance expert here, but my assumption is that the bank note is due in full when the property goes through probate. I'm guessing that if your mother simply signs it over to you with a quit claim deed, the lender would also call the loan.

I'm no expert either but... I'd talk to the mortgage company, explain that you have been making the payments for your parents and ask what would be involved in order to get both the mortgage and property in your name.

The bank is more concerned with getting paid than with who is paying it. As long as you have decent credit, it shouldn't be a big deal to qualify for the loan.

for what it's worth, when I married my wife she had a mobile home mortgage that was in her deceased husbands name only. Because of lack of credit, she couldn't get it refianced in her name. After we got married it was a simple matter to have the loan switched over [same terms] to mine and her name. It did require the signature of her dead husband :eek: :confused: which she signed for him :p