Posted on: 30th Jun, 2009 10:35 am
My mother asked if my husband and I would take over the deed to her house (then we would take out a home equity line of credit to "pay" her for the house).
The problem is, she has an existing home equity line of credit on the house.
Our questions are:
1.) Can she transfer the home equity line of credit loan to us? Then could she transfer the title to us?
or
2.) Can she transfer the title to us then could we assume her loan?
We can't get a straight answer!
Thanks.
The problem is, she has an existing home equity line of credit on the house.
Our questions are:
1.) Can she transfer the home equity line of credit loan to us? Then could she transfer the title to us?
or
2.) Can she transfer the title to us then could we assume her loan?
We can't get a straight answer!
Thanks.
hi guest,
your mother cannot transfer the home equity line of credit to you. you will have to refinance the mortgage in your name. as far as assuming the loan is concerned, you can do it provided if such a clause is mentioned in her loan docs.
as far as transferring the property is concerned, she can first transfer the property and then you can assume the loan if the lender agrees to it.
your mother cannot transfer the home equity line of credit to you. you will have to refinance the mortgage in your name. as far as assuming the loan is concerned, you can do it provided if such a clause is mentioned in her loan docs.
as far as transferring the property is concerned, she can first transfer the property and then you can assume the loan if the lender agrees to it.
Thanks for your reply adonis.
I didn't think she could transfer the deed if she has a lien against it?
I didn't think she could transfer the deed if she has a lien against it?
Hi Guest!
Welcome to forums!
Your mother will be able to transfer the property to you if you could immediately refinance the mortgage in your name. However, you should check the mortgage docs and see if there is a due on sale clause or not. If the mortgage docs have a due on sale clause, then the lender would call the mortgage due immediately after the property is transferred to you.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Your mother will be able to transfer the property to you if you could immediately refinance the mortgage in your name. However, you should check the mortgage docs and see if there is a due on sale clause or not. If the mortgage docs have a due on sale clause, then the lender would call the mortgage due immediately after the property is transferred to you.
Feel free to ask if you've further queries.
Sussane
Wondering what happens if a property is transferred without a mention of the mortgage. At the point the property is transferred, who is responsible for the mortgage?
Is it tied to the property or is it tied to the person who made the loan?
Regards,
Mike
Is it tied to the property or is it tied to the person who made the loan?
Regards,
Mike
Hi PMike,
The property is used as a collateral for the mortgage. It is the owner of the property who will be allowed to take a loan using it as a collateral. During the time of transfer of the property, the original owner is responsible for the mortgage. However, the loan should also be refinanced by the new owner asap.
Thanks
The property is used as a collateral for the mortgage. It is the owner of the property who will be allowed to take a loan using it as a collateral. During the time of transfer of the property, the original owner is responsible for the mortgage. However, the loan should also be refinanced by the new owner asap.
Thanks