Is it possible to tranfer a condo unit's deed even if it's not payed off?

Question

I live with my brother's condo and he is leaving with in this year and his condo is not yet payed off, is it possible to buy his condo for the amount of what ever remaining balance in his mortgage or to be able to just tranfer the deed from his name to me and at the same time to refinance?

Answer 1

It is probably possible for you to assume his mortgage which is the proper term for what I understand you want to do. Now and then there are mortgages written that are NOT assumable and you'll have to check his for the answer. A key question you need to to answer is the existing and current interest rate. If the mortgage rate is lower than current, it will be less cost to you to assume his mortgage. If current rates are less than in his mortgage, assuming his load might still be less cost as they will probably be costs with writing the new mortgage. All this assumes he has relatively little equity built up. Get thee to a mortgage banker for "real" help appropriate for your area though.

Answer 2

Legally, it's a sale and should be treated as such. Your brother is selling you the condo. If the lender will allow for an assumption then you could just take over his loan. If not, you'd have to find purchase money from a lender. Unless, of course, this is a gift and then if the equity he's giving you is over $11K you should pay gift tax on it.

Or, the maybe-not-so-legal-but-it'll-probably-work-anyway way is for your brother to add you to the title with him. Another answerer said this was accomplished with a Quit Claim. That is incorrect. The correct instrument would be a Grant Deed.

If you choose option 2, do it as soon as possible because some lenders have "seasoning" requirements as to months on the title. Your brother would sign a Quit Claim when you went to re-fi the condo into your own name. (If the current lender will not allow an assumption.)

So, you have lots of options....sale, re-fi, assumption, or new loan. Check the rates. You may be better off getting out of your brother's loan.

Answer 3

Hi there,

great question first of all...im sure alot of people can benefit from this answer...

What has to happen is that you first of all have to be added to the title of this property..

this is called a quit claim deed.. It basically gives you equal ownership of the property...

Then you need to refinance the loan in JUST YOUR NAME.. Because you are on title, and have ownership, you will bee able to refinance to a new lender releasing your brother from financial Obligation...

Just before the refinance (but after you do the quit claim deed) , you then quit claim deed your brother OFF OF THE TITLE...(you probably dont want to assume the financial obligation, but still allow him to have equal ownership)

Now you will be the sole owner, and the one solely responsible for the loan...Just remember when you refinance, make sure it is in just your name...

I can help you with the financing as well if you dont already have a mortgage consultant..

I am a licensed loan officer with Providential Bancorp, a nationwide mortgage lender. Feel free to call me and i will be happy to at least give you an analisys so you know what you qualify for..

My name is Jason Fry, you can call or email at 312-264-6448, or email at [e-mail]

I wish you the best!

Jason Fry
Providential Bancorp
312-264-6448

Answer 4

Unless the loan is assumable, and most are not, then the lender could require the loan paid in full immediately upon finding out that he no longer owns the property and that would only take as long as it takes the new tax rolls to come out.

All notes have a Due On Sale clause. Even if it wasn't a "sale" if his name isn't showing as owner, they can and probably will call the loan. He signed the note with that understanding, even if it wasn't pointed out to him. No way around it.

That's a huge chance to take.

Good luck.