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How to deed property to relative who then pays mortgage?

Posted on: 08th Feb, 2009 09:21 am
Process for doing this?
Advantages?
Disadvantages?
hi iberardesco,

a detailed presentation of the situation would have helped me get a clear view of the situation. however, from the question posted by you it seems you want to transfer the title of the property to your relative who would be paying the mortgage. well, in such a case, you can quitclaim deed the property to your relative. a quitclaim is a legal process through which you can transfer your share of interest in the property, either wholly or partially, to someone.

you can take the help of an attorney to prepare a quitclaim deed. to validate the deed, you (grantor) need to sign it in the presence of a notary public, who then signs it and stamps it. in some states, though, the the grantee and a few witnesses also need to sign it to make it legal. the deed, then, is required to be recorded in a county recorders office.

however, through a quitclaim deed. you can transfer the title of a property, but what you cannot transfer is your mortgage or any other financial obligations. what you can do is, you can transfer the property to the grantee through quitclaim deed and ask him/her to refinance the loan so you can pay off your debt.
Posted on: 08th Feb, 2009 08:42 pm
As noted, you can transfer title with a quitclaim deed. Now someone else owns the property, with or without you.
However, their name is not on the mortgage, so, while they make payments they do not get to deduct the mortgage interest paid because they have no mortgage.
Also, when you quitclaim deed, you technically trigger the due on sale clause for your mortgage and if the lender finds out they could call the loan due in full. If the mortgage is always paid on time, the lender may never find out.
Posted on: 09th Feb, 2009 12:54 pm
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