I'm getting a house from my mother through a quit claim deed...it has a mortgage...do I take over payments?

Answer 1

Just make the payments on Mom's mortgage. Many loans do have acceleration or due on sale clauses, but lets be real here - no lender is going to rock the boat on a property with a good payment history just because Jr. is making the payment now. Don't worry about it too much.

DO get the insurance in your name though - and if you are in CA make sure you get your prop 13 tax exclusion paperwork in!

ALSO - make a copy of every check you write to the mortgage company (or to Mom if she is going to make the payment for you). When it comes tiume to refi the property in your name you will have to prove to the lender that you have actually been making the payments - they will want to see the cancelled checks (having the copies will make it easier to get the cancelled ones when it is time.)

You want to refi the loan IF (1) Mom doesn't trust you to make the payment (2) you want her off your back (3) your rate sucks any you need a better rate (4) You want the loan on your credit report to boost your credit score.

Best of luck!

Answer 2

Doing a quit claim deed signed by both you and your mother in front of a notary is legal and an inexpensive way of transferring property from one individual to another. Once signed by the notary you should take the notarized deed to the county recorder's office to be recorded.

The best way to do the same thing is to look in your local telephone book, find a title company, call them and tell them your want mother want to transfer the title of her house to you. They will set up an appointment for you to visit their office to accomplish this in front of one of their notaries. After the signing they will insure that the deed is recorded at the county recorder's office. This method cost a bit more, but over the long run will prove to be beneficial.

Now about the mortgage on the property, yes you can take over the payments of the mortgage, just start sending in the monthly payments as your mother has. There might be a due on sale clause in the contract your mother signed when she got the mortgage, I would not concern myself with it as this is a transfer between daughter and mother.

If the matter come ujp with the mortgage company, simply tell them you were not aware and continue to pay the mortgage. The only time you will have any serious problems is if you miss payments.

A few things could happen, you would have to qualify for the loan with the present lender, who will charge you a point or two for doing this, or the worst that could happen is that you would have to refinace the house.

One other thing change the home insurance changed to your name also.

You might want to talk to your tax preparer prior to doing this as there are and could be some tax implications that could affect the transfer.

Your mother might be able to do this a better way by placing the house in a trust with you as the trustee. See an attorney or para-legal about the advantages of doing this.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

Umm, if your mom quit claims the house to you, the mortgage becomes due in full, the quit claim will be undone, and your mom can be charged with bank fraud.

You see, your mom promised the bank that if they loaned her the money to purchase the home, the bank could have a security interest in the home. If she gives the home away, she's breaking that promise. And that promise was in writing. So breaking that promise will have severe consequences. And if a court were to determine she gave you the house just to get out of the mortgage payments, well, that's bank fraud.

Put another way, your mom owns a home with a lien. And as long as there is a lien, she cannot transfer the title without the permission of the lien holder.

Call the lender. Tell them what you want to do and ask them how to accomplish that. Or hire an attorney. But don't do this yourselves. It's just plain wrong on so many levels.

Answer 4

Most mortgages these days are not assumable, so be certain that you can assume before going any further with this transaction. Most morgages today have a clause which says that if all or any part of the Property or any Interst in the Property is sold or transferred without the Lender's prior written consent, that the lender may require immediate repayment of all sums secured by the security deed or mortgage. .

Be sure that your Mother has the right and consent from the lender to transfer the property before she does it, so that she is not put in a compromising position. If the Lender consents, the lender will require you to submit financials with which to qualify you as a borrower, just as if you were buying the house.

Answer 5

You will have to refinance the mortgage into your name unless her mortgage is "assumable," which means you can take it over as long as you qualify for it.

Have her pull out all her loan docs and check the Federal Truth In Lending. It will state at the bottom if the loan is assumable or not.

Answer 6

Nope, mom's been lifeless now for over ten years, final information I have been given grow to be from a letter from 2003. that's truly helpful to chop up up those outstanding words of understanding out of your mom and positioned up them to Reader's Digest for some money. i'm helpful she does no longer ideas, on account that she grow to be going to deliver you cash...