Posted on: 24th Mar, 2009 10:57 pm
My parents own two houses (house A; house B). House B was refinanced under my name several years ago, but they have been making payments ever since. I have never been responsible for the house.
Currently, House A is being foreclosed on and at the same time I'm trying to purchase a home of my own. To do so, I need to get my name off of House B in order to qualify for a new mortgage.
Is it possible to transfer House B back to my parents somehow? Their credit is bad, but they have been able to continue making payments on House B. What would the process for this entail?
Thanks in advance for any help or tips!
Currently, House A is being foreclosed on and at the same time I'm trying to purchase a home of my own. To do so, I need to get my name off of House B in order to qualify for a new mortgage.
Is it possible to transfer House B back to my parents somehow? Their credit is bad, but they have been able to continue making payments on House B. What would the process for this entail?
Thanks in advance for any help or tips!
Hi felixsmith,
If you are on the title you can sign it over to them through a deed, either quitclaim or warranty. But to get rid of the mortgage which was refinanced in your name, your parents need to refinance it in their names. But given the fact that their credit is in bad shape, I'm not sure if that is going to be a possibility. Moreover, as their house A is going through foreclosure, if they are given the ownership of the house B, there are chances that the lender may put a lien on this house because of a deficiency out of the foreclosure.
If you are on the title you can sign it over to them through a deed, either quitclaim or warranty. But to get rid of the mortgage which was refinanced in your name, your parents need to refinance it in their names. But given the fact that their credit is in bad shape, I'm not sure if that is going to be a possibility. Moreover, as their house A is going through foreclosure, if they are given the ownership of the house B, there are chances that the lender may put a lien on this house because of a deficiency out of the foreclosure.
Thanks for the information jenkin. I was pretty sure that was the case too, but my parents insisted that a transfer or assumption would be easy because they can prove that they've been paying the mortgage. I couldn't really understand any basis for that as they would still need to qualify, regardless, and with their credit in the shape its in, didn't think that was possible.
Hi felixsmith,
If the loan has an assumption clause in it, your parents could assume the loan if they cn prove they are paying the mortgage. I'm not sure though wheher the lender would allow that, given the bad shape their credit is in. But, I think there is no harm in discussing it with the lender to see if they agree to refinance it in their names.
If the loan has an assumption clause in it, your parents could assume the loan if they cn prove they are paying the mortgage. I'm not sure though wheher the lender would allow that, given the bad shape their credit is in. But, I think there is no harm in discussing it with the lender to see if they agree to refinance it in their names.