Posted on: 11th Nov, 2013 02:29 pm
My son and I are a mortgage together. He wants to refinance the mortgage and take me off title (I am in agreement). He suggests I quit claim the property over to him, prior to refinancing, so he can add his wife to the title. Is it necessary to take me off the original loan in order to refinance a new loan with my son and his wife on title? I am concerned I may become responsible for the original loan if he changes his mind or does not qualify on the new loan.
Hi Howard!
Welcome to the forums!
Three people can remain on the mortgage deed and the property deed. However, if you want to remove your name from the mortgage and the property, then you can sign the quitclaim deed at the time of closing. This will ensure you that your son will be able to get the loan refinance.
Feel free to ask if you've further queries.
Sussane
Welcome to the forums!
Three people can remain on the mortgage deed and the property deed. However, if you want to remove your name from the mortgage and the property, then you can sign the quitclaim deed at the time of closing. This will ensure you that your son will be able to get the loan refinance.
Feel free to ask if you've further queries.
Sussane
Hi Howard,
You should sign the quitclaim deed at the closing table as suggested by Sussane. This will help you in safeguarding your interests and you will not remain liable for the mortgage payments.
Thanks
You should sign the quitclaim deed at the closing table as suggested by Sussane. This will help you in safeguarding your interests and you will not remain liable for the mortgage payments.
Thanks
Do everything at closing.
You come off deed and off the mortgage at closing.
His wife goes on deed and on mortgage at closing.
She could also not be on the mortgge and just be added to title.
Quitclaim before closing is not proper thing to do. It would trigger the due on sale clause. That means the loan is due in full if the lender finds out you were taken off the deed. Also, as you note, you are still responsible for the existing mortgage besides.
You come off deed and off the mortgage at closing.
His wife goes on deed and on mortgage at closing.
She could also not be on the mortgge and just be added to title.
Quitclaim before closing is not proper thing to do. It would trigger the due on sale clause. That means the loan is due in full if the lender finds out you were taken off the deed. Also, as you note, you are still responsible for the existing mortgage besides.
