Posted on: 08th Mar, 2009 12:46 pm
My fiancee and I recently got a house. His name is the only name on the loan, so we did a gift warranty deed. Now everyone is freaking me out about the Due on Sale Clause that the title company could invoke. Now I just want my name off the title so we can sleep at night. It was only mailed 5 days ago and most likely hasn't even gone into the system yet. Can I call them to stop this before it gets entered? Or, could I 're-gift' it back to him? If that is an option, my name would not be anywhere on title or traceable, correct? The other thing we were thinking about doing is a living trust, but I am concerned since we already did the warranty deed, we would still get hit with the DOSC because we did the deed before the trust. Are there any other options I am overlooking?
Thanks so much for your help!
Thanks so much for your help!
hi allabouthelp,
i think if you deed the title to the property back to him, it will do the trick. as most of the mortgages come with 'due on sale' clause, any change in the title triggers such responses from the lenders. you can talk to the lender and tell them about your intent to sign it back to him. this might stop them from freaking you out about the due on sale clause.
however, an option that you are overlooking is the option of refinance. you can get a refinance in you and your fiancee's name as both of you are now on the title and then, pay off the existing loan amount with the refinance money. this way, you can be on the title and also pay off the loan.
i think if you deed the title to the property back to him, it will do the trick. as most of the mortgages come with 'due on sale' clause, any change in the title triggers such responses from the lenders. you can talk to the lender and tell them about your intent to sign it back to him. this might stop them from freaking you out about the due on sale clause.
however, an option that you are overlooking is the option of refinance. you can get a refinance in you and your fiancee's name as both of you are now on the title and then, pay off the existing loan amount with the refinance money. this way, you can be on the title and also pay off the loan.