Posted on: 04th Jan, 2010 06:09 pm
Hi,
With a quitclaim deed, does the grantee take over the remaining balance on the property with the grantor's interest rate and financing? Or does the grantee negotiate their own loan for the rest of the balance on the property?
Specifically, in order to transfer the ownership of my in-law's house to my husband and me, is it more financially prudent to have them sign a quitclaim deed or to have them sell us the house so that we can get our own loan and interest rate?
Thanks, courtney
With a quitclaim deed, does the grantee take over the remaining balance on the property with the grantor's interest rate and financing? Or does the grantee negotiate their own loan for the rest of the balance on the property?
Specifically, in order to transfer the ownership of my in-law's house to my husband and me, is it more financially prudent to have them sign a quitclaim deed or to have them sell us the house so that we can get our own loan and interest rate?
Thanks, courtney
transfer of title triggers the due-on-sale clause of the mortgage, so the lender here is going to be looking for payment in full. you would need to obtain your own mortgage so as to take that old loan out.
yes, go get your own mortgage.
yes, go get your own mortgage.
welcome courteliz,
the grantee does not become automatically responsible for the remaining balance on the property. the grantees will have to refinance the mortgage in their name after the property is transferred or sold to them through a quit claim deed. here, you are the grantee to the property. thus, you'll have to refinance the loan in your name. this will make you liable for the loan dues.
the grantee does not become automatically responsible for the remaining balance on the property. the grantees will have to refinance the mortgage in their name after the property is transferred or sold to them through a quit claim deed. here, you are the grantee to the property. thus, you'll have to refinance the loan in your name. this will make you liable for the loan dues.
as a general rule, the refinance transaction we're speaking of ought to be done concurrently with the deed, so as to allow a smooth transition for everyone involved.