Posted on: 08th Dec, 2009 06:52 am
my parents are moving out of state and want to do a quitclaim deed to transfer the ownership of their house to my fiancee and i. they owe about 5 years on the house and seem to be under the impression that we could simply take over thier mortgage when they leave. i guess i'm just wondering exactly how it works, will we need to refinance or get another loan? how is the mortgage affected with a quick claim deed?
Welcome rickilovesmoby,
Transferring property with the help of a quit claim deed will make both of you the owner of the property. However, as the ownership of the property will be changed, you will have to refinance the loan in your name. Once you refinance it, you would become responsible for the mortgage.
Transferring property with the help of a quit claim deed will make both of you the owner of the property. However, as the ownership of the property will be changed, you will have to refinance the loan in your name. Once you refinance it, you would become responsible for the mortgage.
Quit Claiming it to you and your financee gives both of you 100% ownership of the property, but they're still legally responsible for the debt. If you miss a mortgage payment, it'll impact their credit.
The Lender can call the mortgage due and payable if they find out the Title has transferred like that - but they won't find out if all the mortgage payments are paid on time. If they're paid on time for the next 5 years, everything will be fine.
It's best to refinance it into your own names.
The Lender can call the mortgage due and payable if they find out the Title has transferred like that - but they won't find out if all the mortgage payments are paid on time. If they're paid on time for the next 5 years, everything will be fine.
It's best to refinance it into your own names.
