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carnahandavid
Joined: 21 Dec 2006
Posts: 239
58.41 Dollars($)
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Hi Maria,
If the title is transferred in your name then the mortgage company can ask for the loan to be refinanced in your name. The reason is that the loan documents had your parents as the borrowers and the home was in there name. But now they will be on the loan while the home would be in your name. So it would be against the terms provided in the loan document.
| Quote: | | What if I don't refinance and just keep paying the mortgage payments as I have? |
You can keep on paying the mortgage without refinancing it in your name but when the lender would come to know that the title ownership has changed he can ask you to refinance the mortgage in your name or pay it off. He also has rights to force sale of your house and recover his dues. |
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evolovik26
Community Experts
Joined: 15 Aug 2007
Posts: 538
Location: Minneapolis
28.93 Dollars($)
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Hi Maria there are several things that are unclear in your question but here is what i have gathered
Your parents bought the house for you. You live there, pay the mortgage but not on the title or the mortgage.
Legaly that means you dont have the rights to the property whasoever and the payments that you make are your parents responcibility. Basically you rent from them.
But I am assuming that you guys have some sort of arrangement with them.
If they add you on the title you will have rights to the property and they will still have the responcibility for the mortgage and by default any tax benefis from it. This is because the tax benefits on the ammount of money you spend on paying interest on your home and since the morgage is in their name they have the right to claim it. In order to get thouse benefits you would have to buy the home from your parents.
You can do this in one of 3 ways.
1. You can buy the house conventional way and have your parents use gift of equity as a downpayment ( tough to find the lender, bank might want 5% of your own money, closing costs, realtor fees unless you do owner to owner sale )
2. You can setup a contract for deed with them and refinance a year later into a conventional mortage. (make sure you keep copies of the checks, and keep good records, also make sure you are qualified to refinance in a year)
3. They can add you on the title of home and once its recorded you can try to refinance in your name ( you will need to prove that you are maing payments with cancelled checks and this might be a bit hard to do )
As far as any potential sale of the home is concerned so long as your parents are the only people on the title they will be the only people who can claim any proseeds from the home. So so long as you have an arrangement with them there should be no problem with you recieving your share. They can also put you in their will just incase. If there is no will then all who stand to inherit have an equal claim.
If you continue to make the payments you should be fine but you will not recieve any tax benefits. In this case i would ask your parents to put you on the title and when you done paying the mortgage they can quitclaim themselves off.
_________________
Eugene Volovik
Home Loan Consultant
Countrywide
612-481-3127
Conventional, FHA and Commercial Lending in 48 states |
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Ann
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Post subject: Quit Claim Deed |
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| My son and daughter-in-law signed a quit claim deed with a realtor on their house in Colorado. The agreement was that they would pay the mortgage payments until September and then if the realtor did not sell the house, he would pay the mortgage. He has the keys and garage door opener for the house. Now, they can not get in touch with him and are concerned as to what happens to the house and their mortgage. |
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jenkin7
Joined: 04 Jun 2007
Posts: 3317
Location: Hawaii
492.11 Dollars($)
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Lucinda
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Post subject: quit claim deed/mortgage |
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| I purchased a home with my significant other which had previously been his and ex-wife's home. A short while ago, he asked me if I would sign a quit claim deed, but, did not refinance the home. With my name still on the mortgage, am I still part owner of the home by law? |
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jenkin7
Joined: 04 Jun 2007
Posts: 3317
Location: Hawaii
492.11 Dollars($)
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Hello Lucinda,
Are you the co-signer on the mortgage?
If your name is not on the title then you do not have any ownership rights to the property. |
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Alex12
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Lucinda,
Did you sign on the quitclaim deed? if you have done so, then there's a possibility that you may not be on the title to the property but your name will be on the loan until and unless you refinance it. |
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PJ
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| My wife and I may divorce soon and I would like to take my name off our house which I co signed on the mortgage. From what I have read so far, a quit claim will only remove my name on the title; a novation will remove my mortgage responsibility. But with a novation, it's up to the lender if they will accept or not. My wife will not be qualified for refinance, what should I do if the lender denies? |
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jenkin7
Joined: 04 Jun 2007
Posts: 3317
Location: Hawaii
492.11 Dollars($)
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Hello PJ,
If your wife is not qualifying for the refinance then, I guess the lender will not take the risk of removing the co-signer's name.
In case of your wife's default, you are responsible for making the payments.
Has the mortgage payments been regular so far?
It will be better if you clearly talk to the lender about this. |
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Robert Scho.
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Post subject: Quiet Claim |
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| My Wife and I own a condo that my son rents from us. I would like to but his name on the deed for a home owner excemption credit on the condo tax bill. Will the lender call the note due if we do this? |
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aleah
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Post subject: co borrower |
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| I live in WAShington state. If I quit claim this house to my now ex-boyfriend does that relinguish me of my financial obligation? |
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jenkin7
Joined: 04 Jun 2007
Posts: 3317
Location: Hawaii
492.11 Dollars($)
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Hello Aleah,
A quit claim simply transfers the ownership rights in a property and not any financial obligation. You shall still remain responsible for the mortgage.
In order to remove your name from the loan, your ex-boyfriend has to either refinance the loan in his name or do a novation. |
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marina
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Post subject: quit claim to family |
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| I sold our family home to my dtr and husband. The taxes and interest are killing them and they could lose the home. I am willing to refinance and have the advantage of a lower interest rate and better tax rates. They will then lease it from me for the mortgage amount. Would quit claim be appropriate? the possibility of their mortgage company calling in the loan when notified of the quit claim, makes me nervous. How long would I have to get the refinancing in place with a different source? |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.44 Dollars($)
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Hi Marina,
Welcome to the forum.
You have taken a good decision to relief you daughter from the high interest mortgage. "Would quit claim be appropriate?" yes quitclaim deed is good enough to serve the purpose. As your credit score is good, you can be able to get lower interest rate. Better if you shop for lender before hand and as soon as quitclaim is done, you can be able to refinance. Better if you consult with a real estate agent on this matter.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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Keri Smith
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Post subject: quit claim deed |
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| My Mother passed away, leaving her home to myself and my brothers. in her will which has been recorded. Her estate has gone through probate. There is no mortgage on the property. Would a quit claim deed be sufficient to transfer title to all three of us? We are keeping the home as a rental property. |
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