Posted on: 22nd Feb, 2010 09:47 pm
My husband and I purchased a house 3 years ago. Then my sister wanted to move in with us so we took out a construction loan and built a new addition for her specifically. Now after spending the last 2 years renovating the home, we are finally done with the construction and have to sign the remodification papers to convert the construction loan to a fixed loan. She now refuses to sign and is saying that she is not responsible for anything. When the mortgage company finally told her that she has to sign, she is now claiming that her name is not on the deed and needs to be added before she will sign the remodification papers. She then demanded that we sign a quick claim deed, a seller's affidavit of consideration, and a state exemption certificate. What does that mean? We asked the mortgage company if my husband and I could just requalify (since we can) for the loan but they said no! Help! What are our options?
As your sister's name is not on the property deed, she won't be considered as an owner of the property. Thus, you may not be able to include her name in the mortgage. You can sign a quit claim deed and add her name to the property deed.
As far as the other two documents are concerned, they are related to property taxes. Your sister must be thinking that if her name is added to the property, she would become liable for the property taxes. In order to avoid paying the taxes, she wants both of you to sign the seller's affidavit of consideration and a state exemption certificate.
As far as the other two documents are concerned, they are related to property taxes. Your sister must be thinking that if her name is added to the property, she would become liable for the property taxes. In order to avoid paying the taxes, she wants both of you to sign the seller's affidavit of consideration and a state exemption certificate.
Hi gwendace,
If you add your sister's name to the property deed, then she would become one of the owners of the property. After you convert the loan into a fixed one, you can refinance it in your name. However, if you want to remove her from the property deed, then she will have to sign a quit claim deed and transfer the property in your name.
If you add your sister's name to the property deed, then she would become one of the owners of the property. After you convert the loan into a fixed one, you can refinance it in your name. However, if you want to remove her from the property deed, then she will have to sign a quit claim deed and transfer the property in your name.