Posted on: 28th Feb, 2009 05:00 pm
i would like to do a quit claim deed from our property to our
son, the house is being rented and pays for expenses. will i
be resposible for mortgage? how does that work? i want to
know also, if i can purchase another home afterwards.
thank you,
son, the house is being rented and pays for expenses. will i
be resposible for mortgage? how does that work? i want to
know also, if i can purchase another home afterwards.
thank you,
Hi rustypagnetti,
To transfer the title to the property to your son, you can sign a quitclaim deed. However, if you want to get rid of your mortgage responsibilities, you son needs to refinance it in his name bacause a quitclaim deed can only transfer the title, not the loan liabilities. Once your son refinances it in his name, you can be free from your existing loan and thus can purchase another home afterwards.
To transfer the title to the property to your son, you can sign a quitclaim deed. However, if you want to get rid of your mortgage responsibilities, you son needs to refinance it in his name bacause a quitclaim deed can only transfer the title, not the loan liabilities. Once your son refinances it in his name, you can be free from your existing loan and thus can purchase another home afterwards.
Wouldn't the bank holding the mortgage have to be notified and agree to the ownership of the land being transferred, since the borrower no longer owns the land which is collateral on the loan? I have a similar situation where I'd like to take over the payments of an existing real estate owner without refinancing it into my name. Can she quitclaim the property to me and still keep the loan in her name?
Hi Michael,
The bank holding the mortgage needs to be informed whenever a change in the title takes place. If the grantee refinances it in his/her name, the lender generally doesn't have any objection to the transfer of ownership.
The title of the property can be transferred to you, subject to the lender's approval. But I doubt whether the lender would agree to such a transfer if you do not refinance it in your name.
Thanks,
Jerry
The bank holding the mortgage needs to be informed whenever a change in the title takes place. If the grantee refinances it in his/her name, the lender generally doesn't have any objection to the transfer of ownership.
The title of the property can be transferred to you, subject to the lender's approval. But I doubt whether the lender would agree to such a transfer if you do not refinance it in your name.
Thanks,
Jerry
Thanks Jerry.
Do you know of a way to write a side agreement where we take over responsibility for the payments, sort of a "rent to own" type of thing, but where we could go ahead and modify or build things on the property (it currently has power/phone/water) without her being able to sell it out from under us? We aren't particularly creditworthy at the moment, but could probably refinance into our own names in a couple years under a construction loan. Any ideas on how that would work, anyone?
Do you know of a way to write a side agreement where we take over responsibility for the payments, sort of a "rent to own" type of thing, but where we could go ahead and modify or build things on the property (it currently has power/phone/water) without her being able to sell it out from under us? We aren't particularly creditworthy at the moment, but could probably refinance into our own names in a couple years under a construction loan. Any ideas on how that would work, anyone?
Hi Michael,
It sounds good. I think rent-to-own kind of agreement would be a very good option, given the fact that you aren't quite credit-worthy at present. You need to get such an agreement drafted by a lawyer as it involves complicated terms and conditions. Moreover, an agreement prepared by a professional can help you avoid any dispute that may arise out of it in future.
It sounds good. I think rent-to-own kind of agreement would be a very good option, given the fact that you aren't quite credit-worthy at present. You need to get such an agreement drafted by a lawyer as it involves complicated terms and conditions. Moreover, an agreement prepared by a professional can help you avoid any dispute that may arise out of it in future.