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Company Loan Type APR Est. Pmt.

WHAT IS EASIEST WAY TO TRADE HOUSES

Posted on: 11th Jul, 2007 09:16 pm
MY MOTHER-IN-LAW AND I WANT TO TRADE HOUSES WITH EACH OTHER, WHAT IS THE EASIEST WAY TO DO THIS? BOTH LOANS ARE ABOUT 80,000.00 IS THERE A WAY TO JUST TRANFERS NAMES WITH NO BANKS INVOLVED?
Hi Lisa,

If you just want to transfer the title of the property with your mother-in-law, you can easily do it using the quitclaim deed. In that case, you both have to sign the deed and get it recorded with the office of the County Recorder. But, can you tell me why do you want to trade with each other's property when the loan amounts are similar? I am just asking, hope you don't mind.
Posted on: 11th Jul, 2007 09:40 pm
I also have the same question as Larry. Why do you want to exchange the houses? And both having the same amount of mortgage on them.

If you do go ahead with title transfer then bank can ask for both the loans to be refinanced by new owners as there would be change in ownership for both the houses.

Miller
Posted on: 12th Jul, 2007 01:12 pm
Hi Lisa,

Welcome to Mortgagefit discussion board.

It is not possible to only transfer ownership for the house without involving the bank. The reason is that on the mortgage documents house is in your name and if ownership is transferred in your mother in law's name then it will result in activation of the due on sale clause which means that bank can ask for the mortgage to be paid off/refinanced if title ownership changes.

Similar clause will be applicable for the house owned by your mother in law when ownership for that house is transferred in your name.

Do let me know if you have any other questions.

Thanks
Blue
Posted on: 12th Jul, 2007 01:34 pm
"IS THERE A WAY TO JUST TRANFERS NAMES WITH NO BANKS INVOLVED?"

You can go ahead with the transfer and do not inform the bank...but if they somehow come to know about the transfer it is certain that you will be asked to pay off the mortgage. So I wouldn't advice you to conceal the property transfer from your bank...and if it not too urgent then wait for the mortgage to be paid off then go for the transfer. However if it has become necessary to do the transfer then find out if the mortgages are assumable or not.....if the mortgages have assumption clause then you can assume the mortgage your mother in law owes on her property......otherwise you will have to refinance the mortgage in your name.

Best of Luck
Posted on: 12th Jul, 2007 06:08 pm
Hi,

Even if the mortgages are assumable you would have to pay closing costs all over again, you don't wanna do that... do you?

Ben
Posted on: 13th Jul, 2007 07:22 am
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