Novation - Transfer mortgage to another individual

I have owned my home for 20 yrs, but now due to financial difficulties I have missed several mortgage payments. Rather than either selling the house or just walking away, my son would like to keep the house. He will move in and make the payments. How can I transfer the house to him and no longer have the financial responsibility?

I am divorced. My husband has filed Chap. 7 bankruptcy and wants to surrender the house. He has signed a quit claim deed to me. With the bankruptcy and quit claim deed, does this remove him from the mortgage as well as the rights to the property?

My question might have been answered but i did not ind and answer that satisfied my needs.

This is the situation. My Girl friend and her ex own a condo. He does not want anything to do with the condo and is willing to sign it over to her.
The problem is that the mortgage is $136500 and it only appraised for 131000. I was going to refinance with her but we can not get a loan without spending a lot of money on it. I have a 750+ credit score and she has a 720
+ score as well.
What are the chances that the current lender would consider NOVATION? Do we have any other options?

Thanks i advance!!
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My husband and I are getting a divorce. I want to issue him a quit claim deed, to remove my rights from the property. However, his credit is bad and can't refinance right now. I want to know, if I put in our settlement agreement that I will issue a quit claim deed to him, and he has up to 5 years to refinance the house. If in that time he can't refinance, he has to sell the house. Would I be able to force him to sell the house, even though I have no rights in the house, but its in the divorce agreement?

of course, stacey, that's a legal question. with legal questions, you are always better off with a lawyer's opinion than that of a layperson. most of us on MortgageFit have experience in a variety of matters, but few of us are actually lawyers. i'd think you would have a lawyer handling your divorce, though it's not a necessity. if you do, ask the lawyer.

if you don't, go find a lawyer and ask. what you'll get here might be helpful, but it might not be quite right, and you can't afford to be wrong.

to dado,

only a few lenders accept novation agreements. it depends on your individual lender whether he will allow you and your girlfriend to take the responsibility of the mortgage through novation. most lenders would want you to refinance the loan. since the property is worth less than what is owed, a refinance is not possible. talk to the lender and find out if the mortgage is assumable. if it is assumable, you and your girlfriend can take over the responsibility of the mortgage payments through a simple assumption.

to adnerb,

the quitclaim deed does not take your name from the mortgage. it takes him off the property deed only. but when he gets discharged from chapter 7 bankruptcy, he will be personally released from the liability of the mortgage. but he would still have to make the mortgage payments in order to keep the house secure from foreclosure. if he gets discharged from bankruptcy and stops making payments towards the loan, the lender may not want to work with you and may not assist you in keeping the house. the lender can start foreclosure procedure straight away.

If i give my x-spouse a quick claim deed, will it remove it from my credit when I prepare to purchase a house in the future?

eham, i'm not sure if that's what you want to have happen or not, but here's the straight and narrow: quit claiming your interest in property to your former spouse does not eliminate your obligation on the mortgage loan. therefore, unless he refinances and obtains a brand new loan, the loan you and he have had jointly will continue to be reported as a joint loan, with both of you as borrowers. this is not good if he should hvae difficulty making payments, of course. it's also not good if the monthly payment is so high as to hamper your efforts to get financing on a new property.

so...the loan will continue to be reported on your credit report until it is paid in full, either through a refinance or the home being sold.

Our home is in foreclosure. The mortgage and title is in both of our names. We have a buyer, but the title insurance is showing that there is a Federal lien on the property. Only my husband is the taxpayer. So the lien is against him only. Would him quitclaiming the property to me lift the lien and allow me to sell the property? Time is of the essence on this one. Thanks for any help.

Hi Betsy,

The federal lien is placed on the property. So, even if your husband signs a quit claim deed, it will not remove the tax lien from the property. It will remain there, till the time it is paid in full. In case you want to sell the house, the tax lien will have to be paid off first.

exactly: a lien placed on property affects everyone who is an owner, regardless of who the "guilty" party was.

your best bet to get a straight answer is to go directly to a legal source - get a real estate attorney to review your situation and lay out what you're now confronting.

my parents would like to sell my husband and i there house. they still owe $80,000 on their mortgage. the house is appraised for $360,000 but they are selling the house to us for $200,000. i think my husband and i's credit is fair. they need the money to build a house in japan. what is the best way to purchase this house; a. my husband and i apply for a mortgage (unsure if we will be approved) b.my parents take a home equity loan for $200,00 then transfer it to our name and we pay the mortgage.

i'm so confused. please help.

my parents would like to sell my husband and i there house. they still owe $80,000 on their mortgage. the house is appraised for $360,000 but they are selling the house to us for $200,000. i think my husband and i's credit is fair. they need the money to build a house in Japan. what is the best way to purchase this house; a. my husband and i apply for a mortgage (unsure if we will be approved) b.my parents take a home equity loan for $200,00 then transfer it to our name and we pay the mortgage.

i'm so confused. please help.