Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 9 years ago

Possibility of Transfer of Ownership of house with a mortgage to another family member?

I don't know how to ask this question but I will try my best to do so!

Basically I bought a house around 6 years ago which I bought out a mortgage for from a bank. The ownership of the house and the mortgage is under my name but the deed of the property is in the possession of the mortgage company which they took as security when I took out the mortgage.

Due to the recession, I was laid off my job and haven't been able to pay for the mortgage payments every month.

Thankfully my sister kindly agreed to pay the mortgage for me and she has done so for quite some time now. I now want to transfer the ownership of my property into my sister's name as I don't think its fair for the house to be in my name when I'm not paying for it.

Now the mortgage company have been getting their payment every month and it goes out of her account which I can prove. What I wanted to know is whether or not it would be possible for me to transfer the ownership of both the property and the mortgage in my sister's name. I don't want to sell it to her, I just want to transfer both into her name.

Do I need to contact the mortgage lender? Will they allow the transfer to go through? What are the legal complications for this? What do I have to do? Also will any credit card debts secured against the house effect the transfer or is to the mortgage lender, is the property one thing and the credit card something else? I've heard of a "quit claim deed" but I don't know if this is appropriate in my case due to the mortgage still being paid off. (My sister has told me that she doesn't mind taking on the mortgage so this isn't a problem).

I really don't know where to start so the help will be much appreciated!

Thank you!

Update:

Thanks guys for your replies.

It looks like the transfer of mortgage will be a no go but if i did only want to transfer the ownership of the property, how I would I go about doing this?

Would it just be me held liable for the mortgage or both of us seeing as the property would be in her name and the mortgage in mine?

What are the legal complications for this?

13 Answers

Relevance
  • 9 years ago
    Best Answer

    You can transfer ownership.

    You cannot transfer the mortgage without the lender's agreement.

    Additionally, most mortgages have a "due on sale" clause. (Many people call this "non-assumable," but it's not synonymous.) What that means is that upon transfer of ownership, the lender has the option of calling your mortgage due in full, or foreclosing if the full balance is not paid. Whether mortgage companies routinely enforce their option is another question. It's quite conceivable that they may not even notice as long as the payments are made on time.

    So, here's what you have:

    1. You can transfer ownership with a quitclaim.

    2. You cannot transfer your responsibility for the mortgage payments without the lender's approval.

    3. If you quitclaim, you are still on the hook for the payments if your sister fails to make the payments.

    4. If payments are not made, then the lender can foreclose. YOUR credit will suffer because you are the one responsible for the payment, unless the lender agreed otherwise (see #2)

    5. The lender may have the option of calling the mortgage if you quitclaim to your sister. Maybe they'll exercise this option, and maybe not.

    If you want to avoid all of the maybes, what-ifs, etc., then the best thing to do is to simply sell the home to your sister, with your sister securing her own mortgage.

    4.

  • Anonymous
    4 years ago

    This Site Might Help You.

    RE:

    Possibility of Transfer of Ownership of house with a mortgage to another family member?

    I don't know how to ask this question but I will try my best to do so!

    Basically I bought a house around 6 years ago which I bought out a mortgage for from a bank. The ownership of the house and the mortgage is under my name but the deed of the property is in the possession of the mortgage...

    Source(s): possibility transfer ownership house mortgage family member: https://tr.im/qoViZ
  • Hugh
    Lv 6
    3 years ago

    For Finance and credit solutions I always visit this site where you can find all the solutions. http://personalfinancesolutions.info/index.html?sr...

    RE :Possibility of Transfer of Ownership of house with a mortgage to another family member?

    I don't know how to ask this question but I will try my best to do so!

    Basically I bought a house around 6 years ago which I bought out a mortgage for from a bank. The ownership of the house and the mortgage is under my name but the deed of the property is in the possession of the mortgage company which they took as security when I took out the mortgage.

    Due to the recession, I was laid off my job and haven't been able to pay for the mortgage payments every month.

    Thankfully my sister kindly agreed to pay the mortgage for me and she has done so for quite some time now. I now want to transfer the ownership of my property into my sister's name as I don't think its fair for the house to be in my name when I'm not paying for it.

    Now the mortgage company have been getting their payment every month and it goes out of her account which I can prove. What I wanted to know is whether or not it would be possible for me to transfer the ownership of both the property and the mortgage in my sister's name. I don't want to sell it to her, I just want to transfer both into her name.

    Do I need to contact the mortgage lender? Will they allow the transfer to go through? What are the legal complications for this? What do I have to do? Also will any credit card debts secured against the house effect the transfer or is to the mortgage lender, is the property one thing and the credit card something else? I've heard of a "quit claim deed" but I don't know if this is appropriate in my case due to the mortgage still being paid off. (My sister has told me that she doesn't mind taking on the mortgage so this isn't a problem).

    I really don't know where to start so the help will be much appreciated!

    Thank you!

    Update: Thanks guys for your replies.

    It looks like the transfer of mortgage will be a no go but if i did only want to transfer the ownership of the property, how I would I go about doing this?

    Would it just be me held liable for the mortgage or both of us seeing as the property would be in her name and the mortgage in mine?

    What are the legal complications for this?

    1 following 12 answers

    Source(s): For Finance and credit solutions I always visit this site where you can find all the solutions. http://personalfinancesolutions.info/index.html?sr...
  • 9 years ago

    You cannot just transfer the deed and mortgage over to your sister. She has to buy the house from you and get her own mortgage. Assumable mortgages went out the window years ago.

    If you sign a quit claim to her, that wouldn't be too bright either. If for some reason she loses her job or stops making the payments, you would still be on the hook to pay this mortgage, since it would still be in your name. You also would have NO legal claim to the property since your name is nowhere on the deed or title. Also, if the bank found out that you put the deed in her name, they may call the loan due.

    As for your credit card debt, how is that secured to the house unless you took out a 2nd mortgage to pay off your credit cards? Your credit cards have nothing to do with your house, they are unsecured. (unless you did the above scenario) The only thing the credit card companies (or their collection agencies) could do is sue you if you default and put a lien on your property. If the house isn't even in your name, they cannot put a lien on it.

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  • godged
    Lv 7
    9 years ago

    I highly doubt this mortgage is assumable. The lender will not care if she has been making the payments or not. You may not think it is fair, but that is the way it is.

    You cannot just sign it over, throw up your hands and say it is not your responsibility. She would have to obtain her own mortgage and pay off yours, essentially buying your house. The credit cards debts would have to be settled. A quit claim does not apply here.

    Source(s): Oregon Realtor
  • Anonymous
    9 years ago

    Almost no mortgage loans are assumable any more. Further, you cannot sell the house or transfer title to it without paying off the existing loan. That's what the mortgage lender's lien is intended to prevent. It makes no difference who has been actually making the payments.

  • Anonymous
    9 years ago

    You can transfer ownership but not mortgage.

  • 9 years ago

    ownership transfer: YES.

    Mortgage transfer: NO!!! TO get it out of your name, she will need to get a new mortgage and pay off the old one.

  • Bill
    Lv 7
    9 years ago

    If the house appraises for the outstanding balance of your loan, your sister(if she qualifies)can take out a new mortgage and buy the house from you.

  • Anonymous
    5 years ago

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