Posted on: 01st Apr, 2009 12:46 pm
Can I use a Q.C.D. if the house still has a mortgage on it?
Hi
A quitclaim deed can be used, but this will not transfer the mortgage liabilities. The grantor will still be liable for it, even though he/she will have no rights to the property.
A quitclaim deed can be used, but this will not transfer the mortgage liabilities. The grantor will still be liable for it, even though he/she will have no rights to the property.
What happens if both parties agree that the deed is quitclaimed, but the mortgage stays in the original owner's name? They agree that the new owner will just pay the mortgage (which remains in the last owner's name). What are the risks and legalities involved? I am most interested in NY State.
Welcome DBarcelo,
If you transfer property to another person when there is a mortgage on it, the lender wants the new owner to refinance the mortgage in his or her name. Most of the mortgage docs have a due on sale clause. In case you sold off the property to another person, then the mortgage becomes due immediately.
If you transfer property to another person when there is a mortgage on it, the lender wants the new owner to refinance the mortgage in his or her name. Most of the mortgage docs have a due on sale clause. In case you sold off the property to another person, then the mortgage becomes due immediately.
Okay. I thought I had read something to that effect.
What if the original owner just adds the new owner to the deed as an additional owner? Will that prevent the original owner from being able to sell the property? For example, if the original owner and the new owner know each other, and the new owner has really bad credit, or something like that, but the original owner feels very confident that the new owner will pay the mortgage on time. The original owner is okay with keeping the mortgage in their name.
I don't know for sure that this is the case with the original poster or not, but seems like they are looking for a way around getting a mortgage in their name.
What if the original owner just adds the new owner to the deed as an additional owner? Will that prevent the original owner from being able to sell the property? For example, if the original owner and the new owner know each other, and the new owner has really bad credit, or something like that, but the original owner feels very confident that the new owner will pay the mortgage on time. The original owner is okay with keeping the mortgage in their name.
I don't know for sure that this is the case with the original poster or not, but seems like they are looking for a way around getting a mortgage in their name.
Hi DBarcelo!
Welcome to forums!
If the original owner adds someone to the property, then that person also becomes the owner of the property. If the original owner wants to sell off the property, then he would have to take the permission of the new owner as well.
If the new owner's credit is not good, then the lender will not allow the original owner to add his name to the mortgage. If the new owner's name is not on the mortgage, then he will not be liable to pay the mortgage dues.
Sussane
Welcome to forums!
If the original owner adds someone to the property, then that person also becomes the owner of the property. If the original owner wants to sell off the property, then he would have to take the permission of the new owner as well.
If the new owner's credit is not good, then the lender will not allow the original owner to add his name to the mortgage. If the new owner's name is not on the mortgage, then he will not be liable to pay the mortgage dues.
Sussane