Posted on: 10th Aug, 2009 09:44 am
will a quit claim deed affect a loan modification in progress ..my sister is willing to sign over but we dont want to have any problems such a a due on sale clause go into effect or lose the chance of loan modification she is having done change ......
Hi freetech,
You need to go through the mortgage docs and check out if there is a due on sale clause mentioned in it. If yes, then the lender can call the loan due immediately after the property is transferred in your name. As the property would be transferred to someone else, there is a chance that the lender will not be ready to modify the loan. As the loan will remain in your sister's name, the lender may want you to refinance the loan in your name.
Thanks
You need to go through the mortgage docs and check out if there is a due on sale clause mentioned in it. If yes, then the lender can call the loan due immediately after the property is transferred in your name. As the property would be transferred to someone else, there is a chance that the lender will not be ready to modify the loan. As the loan will remain in your sister's name, the lender may want you to refinance the loan in your name.
Thanks