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Quit Claim Deed and outstanding Mortgage

Posted on: 08th Jun, 2010 05:25 am
my grandmother "bought" me a home. however, she wanted to be the only one on the loan, after closing she did a quit claim deed through a lawyer to have the title show me as the only owner. she is getting older and i am afraid that the home can still be taken away when she passes because she has the outstanding debt, i am no where on the mortgage. i was trying to get her lawyer to put something in the will but he is saying i dont have to since i own the home. i am worried, what happens to the loan when she dies, she has enough money in her estate to pay it off, does that automatically happen?
Hi Guest,

As your name is not on the mortgage, you won't be liable for paying off the dues. However, as the property has been used as a collateral to secure the mortgage, the lender will be able to foreclose the property in order to recover the dues. It would be better if you could refinance the mortgage in your name. Then you can keep on paying the dues which will help you in saving the property.

Thanks
Posted on: 08th Jun, 2010 11:44 pm
Hi,

James is absolutely correct. As your grandmother quit claimed the property in your name even if you are not on the mortgage, you still own the property. However, if your grandmother is late in her payments, then the lender can foreclose the property to recover the dues. If you have a stable source of income then you can help your grandmother to pay the mortgage payments even if you are not on mortgage. You can also re-finance the mortgage in your name if the lender allows. I would suggest you to discuss with the lender and see the options.
Posted on: 15th Jun, 2010 07:16 am
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