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Company Loan Type APR Est. Pmt.

Quick Claim Deed and Home Equity Loan

Posted on: 14th Aug, 2009 05:04 pm
my mother and i own my current home (i am married, but my wife is not on the quick-claim deed with my mother and i), the house is paid off and no mortgage is attached to the house. my wife and i would like to do a home equity loan, but it requires my mother to do one of two things: 1) apply for the loan with me as a co-applicant or 2) remove her name from the deed and hence her portion of the ownership of the house. she is reluctant to do either. my question is this, is it possible for her to remove her name temporarily from the deed, then after the home equity line is approved i can add her name back on via a quick claim deed? my other option is to have her sign off on her portion of the house and then i would do a living trust via an attorney which would put the house in trust with her and myself within the trust on the house. how would this effect ownership of the house and inheritance? thank you.
Hi rolandmyoung,

You can remove your mother temporarily from the property deed and later on add her to the deed but you would have to take the lender's permission. The lender may want you all to refinance the loan after there's a change in the property title. As far as the trust is concerned, the lender may want you to remove the property from the trust and then give you a loan.
Posted on: 14th Aug, 2009 07:39 pm
rolandmyoung

Welcoemto the forum

You can absolutely remove your mothers name for short period of time and get your equity loan and then readd her to the deed


Good luck and feel free to ask
Posted on: 14th Aug, 2009 10:56 pm
Hi Realgeni-

If I can add her back on the deed via a quick claim deed, normally will the bank have any issues with it (i.e.- would my mother then be responsible if the loan is in default?). Also, per Adonis' post above, would I have to refinance the loan???

Thank You.
Posted on: 16th Aug, 2009 07:50 am
Roland Young

It is always good to inform the bank about the chnages. But it tinot necessary, if you donto want your mom to gte in to it.

If you default your mom is not responsible for the payment. But she may loose the house

Good luck and feelfree toask
Posted on: 16th Aug, 2009 09:28 am
Hi Roland!

Welcome to forums!

The bank may have issues in case you add your mother back to the property deed. The bank may call the loan due immediately and you'll have to pay off the loan amount to the lender. However, your mother will not be liable for the loan, if you add her to the property deed. She will be responsible for the loan only if you add her name to the mortgage docs after you refinance.

Feel free to ask if you've further queries.

Sussane
Posted on: 16th Aug, 2009 09:22 pm
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