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Quit Claim and Novation??

Posted on: 11th Apr, 2010 03:22 pm
a friend of the family has a house that he pays a mortgage on he recently lost his job and cant make the payments anymore and wants to transfer the house in me and my husbands name how can we do this?
hi roxy,

your friend can transfer the house to you and your husband through a quitclaim deed. once the deed is notarized and recorded, you will have the property in you and your husband's name. however, to get the mortgage in your name, you will have to refinance the loan. you can also check with the lender if he would allow you to assume the responsibility of the mortgage through a <ahref>simple assumption. a novation is unlikely to be applicable in this particular situation.
Posted on: 11th Apr, 2010 10:28 pm
i think that assumptions are pretty much a thing of the past as well.

you didn't mention, roxy, whether or not you own a home yourselves. if you do, this new acquisition would be looked upon as an investment for you and that would shed new light on the picture as well.
Posted on: 12th Apr, 2010 09:54 am
let me restate what i just said...it's going to be viewed as an investment for you in any event, unless you plan to move into the home. lenders are not prone to allow an assumption on that basis (nor novation, of course).
Posted on: 12th Apr, 2010 09:55 am
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