Posted on: 10th Sep, 2006 02:40 pm
i wnt to buy my mom\'s 2nd home, have been living in it and pying mort pymt for last 14 yrs already..owes 88,000..and house is worth 340,000... we would prefer to do a quit claim..does the lender still have to do an approval if she doesn'twant to remove her name from the mortgage...do they charge to transfer this? what happens if we just file a quit claim on the property in our county and the lender is not aware of it? if we do a novation and they transfer mort to us, we can then take the interest off on taxes, right?
Hi,
"Does the lender still have to do an approval if she Doesn'twant to remove her name from the mortgage...do they charge to transfer this?
"
Whether the lender will do an approval will depend upon the lender himself. And, I don't think the lender will charge any fee if you do a quit claim. It's just that you need to inform him since the property is still mortgaged.
"What happens if we just file a quit claim on the property in our county and the lender is not aware of it?"
It is better that you inform the lender that you are willing to file the quit claim. The lender would require you to do this, because he wants to be assured that even if the property interest is transferred to some other person, he will get back his money through the monthly payments.
"If we do a novation and they transfer mort to us, we can then take the interest off on taxes, right?"
You can do a novation and get the mortgage in your name but you will only be able to take the interest off on taxes provided you itemize all your taxes. You may consult a tax advisor for further advice on this issue.
Thanks,
Caron.
"Does the lender still have to do an approval if she Doesn'twant to remove her name from the mortgage...do they charge to transfer this?
"
Whether the lender will do an approval will depend upon the lender himself. And, I don't think the lender will charge any fee if you do a quit claim. It's just that you need to inform him since the property is still mortgaged.
"What happens if we just file a quit claim on the property in our county and the lender is not aware of it?"
It is better that you inform the lender that you are willing to file the quit claim. The lender would require you to do this, because he wants to be assured that even if the property interest is transferred to some other person, he will get back his money through the monthly payments.
"If we do a novation and they transfer mort to us, we can then take the interest off on taxes, right?"
You can do a novation and get the mortgage in your name but you will only be able to take the interest off on taxes provided you itemize all your taxes. You may consult a tax advisor for further advice on this issue.
Thanks,
Caron.