Posted on: 26th May, 2011 02:12 pm
a couple of years ago i purchased a home with my girlfriend at the time. within a year of the purchase, we broke up and she moved out. i have since taken care of all of the mortgage payments and continued to live in the house. ideally, i want to take her off of the title, with her approval, without affecting my mortgage as i am planning on moving with the next year or two and do not want have to pay the 1000's of dollars in fees, taxes, appraisals, etc. related to either assuming the mortgage or refinancing. essentially what i want to know is 1) if i file a quit claim deed to remove her from the title, will this impact my mortgage, and 2) if it will impact my mortgage is there any other mechanism available to remove her from the title without affecting the mortgage?
If you are both on the loan, and both on title, you can quitclaim her off title. You should check with the lender to make sure this wont trigger the due on sale clause. Taking her off title, does not change the liability of the loan. The only way to remove a party from liability from the loan, is to refi or sell.
Hi matthewjantzen,
Your girlfriend needs to sign a quitclaim deed and transfer the property to you. While doing so, you can inform the lender about it. If the mortgage is in both the names, then you need to refinance the loan in order to remove her from the mortgage docs.
Thanks
Your girlfriend needs to sign a quitclaim deed and transfer the property to you. While doing so, you can inform the lender about it. If the mortgage is in both the names, then you need to refinance the loan in order to remove her from the mortgage docs.
Thanks
So basically, depending on the lender, I could take her off the title with a quit claim deed and it would have no effect on the mortgage (not have to refi or assume mortgage by myself, or sell)?
So basically, depending on the lender, I could take her off the title with a quit claim deed and it would have no effect on the mortgage (not have to refi or assume mortgage by myself, or sell)?
Matt, as mentioned earlier, there is a due-on-sale clause in your mortgage. That clause covers all conveyances relative to the property - so a quit claim deed, while only changing ownership, is still a conveyance. The only way in which to determine if the lender wants its money back is to seek out that answer from them. On a performing loan, most lenders will simply ignore the quit claim; but since their original loan was made to two borrowers, the removal of one might make them feel insecure and could cause them to insist that you go through the refinancing process.
