Posted on: 29th Mar, 2009 10:32 am
My fiance' needs to remove his ownership from his home for a specific reason. My fiance' wants to quit claim his house to me, therefore no ownership issues. We will both be making the mortgage payments as we have been for years. He knows that he is still responsible for payment. He needs his name off the title for other reasons.We don't want the mortgage company to demand that I put the loan in my name because I will not qualify right now. I want to do it in the future after credit repair. Can the quit claim happen without mortgage holder (private lender) finding out. We have never been late on a payment and don't plan on it. Will this work or is there an unforseen problem?
Hi Audreyann,
Most of the mortgages come with a due-on-sale clause which makes it necessary for the borrower to inform the lender about any title change. If the lender finds out about the change, they can call the balance amount due and you could be asked to pay it off immediately. If you record the deed, it enters into the public records. Thus, it might not be possible for you to hide it from your lender for long.
Most of the mortgages come with a due-on-sale clause which makes it necessary for the borrower to inform the lender about any title change. If the lender finds out about the change, they can call the balance amount due and you could be asked to pay it off immediately. If you record the deed, it enters into the public records. Thus, it might not be possible for you to hide it from your lender for long.
Thanks Jenkin7. If there is no money exchanged with quit claim and we continue to pay the mortgage as always, the lender would not get notice of a title change. Unless they do research or we tell them. Is that right?
Hi AudreyAnn,
Yes, it's correct that until the lender researches, he would not come to know about the change of ownership. But in any case, you should inform the lender about the transfer of property. If the lender comes to know the change of ownership later on, he may call the loan due immediately.
Yes, it's correct that until the lender researches, he would not come to know about the change of ownership. But in any case, you should inform the lender about the transfer of property. If the lender comes to know the change of ownership later on, he may call the loan due immediately.
Thank you Adonis. I will take care of that. I appreciate your help.
You are most welcome Ann :) If you have further queries regarding mortgage and related issues, feel free to post in the forums. The experts and other members participating in the forums would help you in getting a solution.