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Transfer loan/deed from my parents to my wifes parents

Posted on: 05th Jan, 2010 11:54 am
I need a texas attorney to help with a home in north texas. My wife and I had a good sum of money for a down payment and to make some repairs (80k). We could not sell our current home and did not qualify to buy so my parents agreed to buy the home and we put up the cash. Now my folks need this loan/home off their book as the economy has hit their businesses and they need to refi and this house is a problem. My mother in law has more than enough means to finacne the note and is willing, but she needs the process to be simple and as clean as possible. Her attorney in Florida requires a Texas attorney to work this. Can you help?
hi donovanshanahan!

welcome to forums!

it is true that your mother-in-law would require a texas based attorney to help her in this regard. the property should be first transferred to your mother-in-law's name with the help of a quit claim deed. once this is complete, she needs to refinance the mortgage in her name. however, getting a refinance would depend upon the equity in the property. if there is no equity, then the lender will not let her refinance the loan.

feel free to ask if you've further queries.

sussane
Posted on: 05th Jan, 2010 11:15 pm
I am told by a mortgage guy that the note is the only thing the bank cares about. He further told me that a refinance could 'add' my wife's mother, but that the refinance could NOT remove my parents. He said to accomplish that a second refinance would have to be completed about 6 months later to remove my parents from the note. I am concerned that this is shifty double commission pitch. We can't afford to pay 20% down again since we did that 1.5 years ago. What do you think?

THANKS!!!
Posted on: 06th Jan, 2010 06:03 pm
Hi donovanshanahan,

As far as I know, a refinance will be able to remove your parents from the mortgage docs and add your wife's mother to it. But there would be the seasoning requirement. After a change in property deed, your mother-in-law will have to wait for 6 months in order to refinance it.

Thanks
Posted on: 06th Jan, 2010 11:36 pm
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