warranty deed subject ot debt

Most mortgages have a due on sale clause, you might want to look at your mortgage. The debt will show up on your credit unless you do a formal assumption with the lender. The taxes will show in the new owner's name once the deed is recorded and depending on your county/state when new tax rolls come out.

Hi A.S.!

Welcome to forums!

I agree with Jan Van Petten here. You should first check out the mortgage docs properly and look if there is a due on sale clause. If there is any such clause mentioned in the mortgage docs, your mortgage will become due immediately after you sell off the property.

Sussane

We are selling our property to an investment company for the amount of our payoff; however, renovations will be done by the investor and the investor will put it on the market, and once it sells, we will or the bank will receive the payoff amount. Until then the buyer will be responsible for the first mortgage and utilities. We are signing a Warranty Deed Subject to the Mortgage, listing the lender information on the Warranty Deed.

As I understand this, we are transferring the property. We still remain responsible for the debt, and before the buyer can sell it again, the mortgage must be paid in full.

Is there a lot of risk involved? We are going through a closing attorney of the title agency?

Hi Sasa,

As you sell off the property to someone else, will the mortgage remain in your name? If yes, then things can be risky for you.