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If names are removed from deed, how can interest still be held?

Posted on: 28th Sep, 2008 06:26 am
When my ex & I divorced 29 years ago, I placed my children's names on the deed as 50% owners of the house in NJ. My ex remained in the house to this to this date. He now wants to get a reverse mortgage & is asking them to remove their names from the deed because no one under the age of 62 can be on the deed. How can they protect their interest in the house if they remove their names? (the house has recently been appraised at $450,000) Will a quitclaim deed do this? Will the reverse mortgage allow this?
Hi AMULEA!

Welcome to Forums!

Yes, by a quitclaim deed, your children can remove their names from the deed but I do not know if any such law stating no one under the age of 62 can be on the deed is there. In order to hold their interest in the property, they can include the clause of life estate through which they will have the right to live in the house till death.

Feel free to ask if you have further queries.

Sussane
Posted on: 28th Sep, 2008 09:17 pm
Thanks for the information. Are you saying that you know of no such law that states names of anyone under 62 must be removed from a reverse mortgage deed? Will the reverse mortgage company allow a quitclaim deed? Their Dad continues to live in the house now, how does a life estate help their interest in the home?
Posted on: 29th Sep, 2008 04:05 am
Hi Anna!

Reverse mortgage is offered to those people who are above 62 years of age. So you husband wants to remove the name of the kids from the deed of the house. Yes, I think the mortgage companies will allow this quitclaim deed.

A life estate gives the right to the grantor to live in the house until death. If your kids are adult and if they are quitclaiming their property to their father, then they can include this clause in the deed and live there.

Thanks,

Jerry
Posted on: 30th Sep, 2008 02:41 am
If the mortgage company is requiring that the children be removed from title it is highly unlikely that they will allow a life estate interest.
Posted on: 30th Sep, 2008 06:07 am
Hi guest!

Yes, then I don't think they will allow a life estate of the children in the property. But yes definitely, your ex will get a reverse mortgage on the property and will be able to live in the house unless the mortgage is due.

Feel free to ask if you have further queries.

Sussane
Posted on: 01st Oct, 2008 11:03 pm
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