Posted on: 08th Jul, 2008 09:16 am
I have a house with a small mortgage approx 30k, i want to give the house to my son. can this be done? House worth about 140k, live in Texas, owe 30k on house. Does Son have to assume the loan, get a loan in his name or can I deed house, then continue to make payments
Welcome,
In most cases it is best to consult the lender before a transfer of title when there is still a loan pending on the property. There is usually a clause in the loan documents referred to as an Alienation or Acceleration clause.
I.E. Title to the property cannot transfer either by sale or quit claim deed without triggering the Acceleration or Alienation Clause thus causing the loan balance to become due and payable.
Very few loans are assumable in this day & age. Either check the loan documents you signed or call the lender.
More than likely your son sill have to 'buy' the house from you or you may want to refinance the loan & add his name to the title.
In most cases it is best to consult the lender before a transfer of title when there is still a loan pending on the property. There is usually a clause in the loan documents referred to as an Alienation or Acceleration clause.
I.E. Title to the property cannot transfer either by sale or quit claim deed without triggering the Acceleration or Alienation Clause thus causing the loan balance to become due and payable.
Very few loans are assumable in this day & age. Either check the loan documents you signed or call the lender.
More than likely your son sill have to 'buy' the house from you or you may want to refinance the loan & add his name to the title.
Hi Guest.
Welcome to the forum.
I have to agree with Lynnette that you cannot transfer the property using the quitclaim deed without taking approval from the lender. And loan assumption occurs in the process of home buying or selling. I think the lender may ask your son to refinance the mortgage on his name only.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
I have to agree with Lynnette that you cannot transfer the property using the quitclaim deed without taking approval from the lender. And loan assumption occurs in the process of home buying or selling. I think the lender may ask your son to refinance the mortgage on his name only.
Feel free to ask if you have any further questions.
Best of luck,
Larry
