Posted on: 11th Oct, 2006 04:35 pm
We just closed on a house in August 2006 with Countrywide. The mortgage is on both my name and my fiancee name (borrower and coborrower) and so does the deed. We are thinking to change the deed into my name only while keeping both of our name in mortgage. The reason is that my fiancee has higher lawsuit exposure due to the nature of the job than me (so far no lawsuit).
I read on the mortgage paperwork that there's a clause that lender can accelarate the mortgage if we transfer the interest in the property. However we do not transfer the property outside the borrower and co-borrower.
Is this possible to get done? Do we need to approach the lender first requesting the permission (we are tempting to call the lender but hesitate that the question may raise red flag since we just close)? Any advise on how to proceed on this will be greatly appreciated.
Thanks.
I read on the mortgage paperwork that there's a clause that lender can accelarate the mortgage if we transfer the interest in the property. However we do not transfer the property outside the borrower and co-borrower.
Is this possible to get done? Do we need to approach the lender first requesting the permission (we are tempting to call the lender but hesitate that the question may raise red flag since we just close)? Any advise on how to proceed on this will be greatly appreciated.
Thanks.
hi,
i think you should certainly consult the lender about transferring the property interest in your name. and for that quit claim deed can be used.
i think you should certainly consult the lender about transferring the property interest in your name. and for that quit claim deed can be used.
Hi Ziffies,
By way of quit claim deed your fiancee's interest in the house will get transferred in your name but she would still be liable for the mortgage payments being a co-borrower.
Thanks
Daniel Jeffery
By way of quit claim deed your fiancee's interest in the house will get transferred in your name but she would still be liable for the mortgage payments being a co-borrower.
Thanks
Daniel Jeffery
ziffies, You can remove the co-borrower's name from the title; i guess the lender will not have problems as your fiancee has higher lawsuit exposure.
Hi Ziffies,
"Is this possible to get done?"
I think you can transfer the deed on your name only; being on the mortgage along with your fiancée will not affect the transfer.
"Do we need to approach the lender first requesting the permission (we are tempting to call the lender but hesitate that the question may raise red flag since we just close)? "
Only that you need to take permission from the lender as he has interest in the house against which he has given you the loan.
Thanks
"Is this possible to get done?"
I think you can transfer the deed on your name only; being on the mortgage along with your fiancée will not affect the transfer.
"Do we need to approach the lender first requesting the permission (we are tempting to call the lender but hesitate that the question may raise red flag since we just close)? "
Only that you need to take permission from the lender as he has interest in the house against which he has given you the loan.
Thanks
Hi Ziffies,
You need to ask the lender if he will allow you to remove the co-borrower from the title. Then you should contact an attorney in order to prepare a quit claim deed for you. You can then you can ask your fiancée to sign the deed as grantor and transfer the property interest to you. But remember, the quit claim does not guarantee as to what quantity of interest is being conveyed, it just mentions that the interest has been transferred.
A grant deed is no doubt a better choice than quit claim as it guarantees that property title is free from any lien and that it has not been transferred to anyone else. But you cannot use this deed as the property has a lien, which is the mortgage for which you will be paying.
Know more on How to remove co-borrower from title from our previous discussion.
Thanks,
Caron.
You need to ask the lender if he will allow you to remove the co-borrower from the title. Then you should contact an attorney in order to prepare a quit claim deed for you. You can then you can ask your fiancée to sign the deed as grantor and transfer the property interest to you. But remember, the quit claim does not guarantee as to what quantity of interest is being conveyed, it just mentions that the interest has been transferred.
A grant deed is no doubt a better choice than quit claim as it guarantees that property title is free from any lien and that it has not been transferred to anyone else. But you cannot use this deed as the property has a lien, which is the mortgage for which you will be paying.
Know more on How to remove co-borrower from title from our previous discussion.
Thanks,
Caron.