Posted on: 17th Sep, 2010 07:15 pm
My dad has a house that is currently (title/mortgage loan) all under my name because he had no credit back then to purchase a house. Now I'm wanting to transfer everything back to him since I'm about to purchase my own house and want no liability or anything to do with it. My dad has been making payment on thehouse for the last 10 years without a problem. His credit did get better to where he might be able to get a loan for it. I heard about loan assumption? My loan is assumable is what the bank told me. Is that the best way to go to avoid paying the least fees and let him assume the loan? would there be any disadvantage to me by doing that. My main concern is just to get that house out of my liability and into his name. any feedback appreciate.
hi wendynhuyen,
you can transfer the property to your father and he will have to refinance or go for a novation in order to get the mortgage in his name. a loan assumption normally comes into play when you sell off your property to some else and that person wants to take over the loan in his name. it will be better if your father could contact the lender and apply for a novation to get the mortgage transferred in his name. however, lenders prefer refinance over novation.
thanks
you can transfer the property to your father and he will have to refinance or go for a novation in order to get the mortgage in his name. a loan assumption normally comes into play when you sell off your property to some else and that person wants to take over the loan in his name. it will be better if your father could contact the lender and apply for a novation to get the mortgage transferred in his name. however, lenders prefer refinance over novation.
thanks