Posted on: 20th Jan, 2009 05:57 pm
hello!
my dad purchased a home for us in 2005. in 2007, our names (my husband's and mine) were added to the property title. but the loan remains in my dad's name. now, we want to transfer the mortgage/loan to our names. the loan i not assumable. we are told the only way to do i is to refinance, which is not a very good option right now because the current value of the home is much, much lower than the purchase price.
do we any other options? how else can we transfer the loan into our name? we wish to do a short sale, but because we have been paying our mortgage every month and we don't want to ruin my dad's credit, we don't think we could. or could we?
we appreciate your time and hope you could answer our questions and give us good options. thank you.
my dad purchased a home for us in 2005. in 2007, our names (my husband's and mine) were added to the property title. but the loan remains in my dad's name. now, we want to transfer the mortgage/loan to our names. the loan i not assumable. we are told the only way to do i is to refinance, which is not a very good option right now because the current value of the home is much, much lower than the purchase price.
do we any other options? how else can we transfer the loan into our name? we wish to do a short sale, but because we have been paying our mortgage every month and we don't want to ruin my dad's credit, we don't think we could. or could we?
we appreciate your time and hope you could answer our questions and give us good options. thank you.
hi!
welcome to forums!
as the loan is not assumable, then you will have to go for a refinance. you can speak to the lender about novation which is also a way of transferring mortgage. however, you should note that lenders prefer refinance over novation.
yes, a lender will not accept a short sale if you are current on your payments. lenders generally accept a short sale when you are at least a month delinquent on payments. as the mortgage is in your father's name, a short sale of the property will affect your father's credit and will lower it by 75-100 points.
in my opinion, you should try to refinance the property first in your name and then if you want you can short sale the property.
feel free to ask if you have further queries.
sussane
welcome to forums!
as the loan is not assumable, then you will have to go for a refinance. you can speak to the lender about novation which is also a way of transferring mortgage. however, you should note that lenders prefer refinance over novation.
yes, a lender will not accept a short sale if you are current on your payments. lenders generally accept a short sale when you are at least a month delinquent on payments. as the mortgage is in your father's name, a short sale of the property will affect your father's credit and will lower it by 75-100 points.
in my opinion, you should try to refinance the property first in your name and then if you want you can short sale the property.
feel free to ask if you have further queries.
sussane