Posted on: 01st Jul, 2011 04:30 am
Me and my wife owned a house which mortgage with bank. We want to gift the said house to our daughters with existing loan. But the said loan is repaid by us as schdule. is it possible or not. If not please suggest other possibilities.
You can add your daughter to the home title, but she cannot be added to the loan, unless you sold it to her, or refinaced with her on the loan also. To refi with your daughter to be on the loan also, she would need to first be on title for 6 months. If you want to "sell" the property to your daughter, sometimes transfer of ownership can trigger the "due on sale clause" meaning the lender could call the entire loan due. If you want the entire home loan in her name, then you would have to sell/refi once she is on title. You can add her on title, and just continue to make the payments. And if you can have her make mortgage payments, with cancelled checks, then she would have Vested interest in the property and there would be no problem for her to refi in her name solely. Good luck