Posted on: 30th Mar, 2010 01:09 pm
my husband co-owns a townhouse, but is living in the th that i currently own. he wants his friend (who co-owns with him) to just assume the mortgage (if possible) instead of trying to buy my husband out. both are on the title and mortgage. basically my husband wants his friend to assume 100% of the mortgage (instead of a 50/50 mortgage) and take over 100% of the payments and my husband will walk away from the property. is this feasible option? if the friend wanted to refinance, could he do so and add his wife to the title/mortgage at that point?
Hi shwoods,
You should note that not all mortgages are assumable. If the mortgage docs mention the clause of assumption, then your husband's friend will be able to assume the loan rather than refinancing it. However, if the loan is not assumable, then your husband's friend will have to refinance the loan in his name. While the friend refinances the loan, your husband can transfer the property to him. The friend, in turn, would be able to add his wife to the loan. As far as adding his wife's name to the property deed is concerned, he can do so by a quit claim deed.
You should note that not all mortgages are assumable. If the mortgage docs mention the clause of assumption, then your husband's friend will be able to assume the loan rather than refinancing it. However, if the loan is not assumable, then your husband's friend will have to refinance the loan in his name. While the friend refinances the loan, your husband can transfer the property to him. The friend, in turn, would be able to add his wife to the loan. As far as adding his wife's name to the property deed is concerned, he can do so by a quit claim deed.