Posted on: 24th Feb, 2009 07:59 pm
My grandmother passed away and my father was quitclaimed to the title tears before her passing. She has a loan n the home does he assume that loan ? Can the bank step in and remove family living in the home if the payment is being made?
Hi T,
When a grantor transfers his/her share of interest to a grantee, the loan and other financial obligations are not transferred. Thus when your father was quitclaimed to the title, he became the legal owner of the house without assuming the loan liabilities. He cannot be held liable for the loan.
However, was the lender informed about this change in the title? If not, then the lender can challenge the validity of the deed and reverse it.
When a grantor transfers his/her share of interest to a grantee, the loan and other financial obligations are not transferred. Thus when your father was quitclaimed to the title, he became the legal owner of the house without assuming the loan liabilities. He cannot be held liable for the loan.
However, was the lender informed about this change in the title? If not, then the lender can challenge the validity of the deed and reverse it.
Surely they can challenge the deed in court, so it is better to settle down the matter out of court as it will be a easy route. :wink:
i do agree that if you can settle it out of the court then surely you will save lots of money as well as time. :arrow:
The lenders know he was on the house he signed the loan papers ,but when you look at the mortgage loan details online it states "Primary Borrower" and has her name only.
Hi tlg,
Even though he is not the primary borrower, he is equally responsible for the loan as the co-borrower. However, as long as the payments are being made regularly, the lender won't mind who's on the loan and who's not and as it was mentioned "...the payment is being made", I don't think he has anything to worry about.
Even though he is not the primary borrower, he is equally responsible for the loan as the co-borrower. However, as long as the payments are being made regularly, the lender won't mind who's on the loan and who's not and as it was mentioned "...the payment is being made", I don't think he has anything to worry about.