Posted on: 29th Jun, 2010 05:23 am
My mother-in-law gifted a large sum of money towards the pruchase of our home with the intent that she would move in with us. The day after the closing, she decided not to move in and is harrassing us to add her to the deed. I don't know if a quitclaim is possible since our closing papers state that the loan on the home may become due if we alter the names on the deed (We live in South Carolina). Our intent was not to take her money for ill gains. We truly thought we were doing the right thing and she has no desire to move into the home. I can understand her frustration over the large sum of money but we have no way of paying her back and she was the one who changed her mind. We've put ourselves in a very difficult situation and do not know how to resolve. Many promises were broken and not legally documented.
Welcome rbell,
As your mortgage deed mentions that alteration to the property deed may lead to the mortgage becoming due, it won't be a good option to add your mother-in-law to the property deed. You need to negotiate with her and make her understand the whole situation.
In case she does not understand the whole situation, you can add her name to the property deed and then refinance the mortgage with any other lender. As the current loan will become due, you can pay it off by taking a new loan in the form of refinancing. Then you need to pay off the new loan dues on time to the new lender.
As your mortgage deed mentions that alteration to the property deed may lead to the mortgage becoming due, it won't be a good option to add your mother-in-law to the property deed. You need to negotiate with her and make her understand the whole situation.
In case she does not understand the whole situation, you can add her name to the property deed and then refinance the mortgage with any other lender. As the current loan will become due, you can pay it off by taking a new loan in the form of refinancing. Then you need to pay off the new loan dues on time to the new lender.
If my mother-in-law is addeded to the deed and then when refinance, will she have to part of the mortgage agreement. She was very clear that she did not want to be part of a mortgage.
Hi rbell,
The lender will want all the owners of the property to be a part of the mortgage. Thus, when you add your mother-in-law to the property deed, the lender will want all of you to refinance the loan.
Take care.
The lender will want all the owners of the property to be a part of the mortgage. Thus, when you add your mother-in-law to the property deed, the lender will want all of you to refinance the loan.
Take care.