How to transfer a loan?

Question

Here is the story, my mom wanted to get rid of a house under her name to buy another house. she tried putting it in the market but nobody bought it. anyways, she asked me & my husband to get prequalified so we can get the house. she would still make the payment for it. however, we want to get rid the loan & title under our name already. is selling it the only way or is there any other way?

here are some more details... me & husband already bought the house from her. so the loan & title are under me & my husband's name. so, my question is, can we transfer it back to her or somebody (eg. siblings) without reselling?

Answer 1

Yeah, basically you need to sell it (even if it's just to your mom). You say you have your names on title and the loan. If you transfer title to anyone, it will likely trigger the due on sale clause of your loan. And the lender won't assign the loan to anyone else unless they're on title (and even then, they would have to apply for the assignment). So basically the people you will be transferring the property to will be named on title and a loan, and that's what happens when a property is sold.

Answer 2

You do not have to sell the house. You can just execute a Quit Claim Deed and transfer title to whoever you want, after that the new owner will refinance the property under their name.
That is a basic idea, provided the "new owner" can qualify for that loan.
I have a suspicion that you will have an issue no matter what -- basically there is this property that you can't get rid of, so no matter who gets a loan for it will have an inconvenience of dealing with extra mortgage on their name for an unwanted property. However, since the property is already under your name, how is it disturbing you? If your mother is making mortgage payments on it, you're safe, now if you go for refinancing of your own property and they ask what is that extra mortgage, you will say that this is a property that you rent to your mother. Show them a lease agreement, and even canceled checks showing your mother's payments to you every month. Don't worry about the lender of that unwanted property, they will not know what you told your lender.
You get the idea.

Answer 3

I do not really understadn your question so here it goes:

If you are trying to transfer both title and the loan to either yourself or another it must occur through a sale. Your property tax will be reassessed.

If you just transfer title you must be on title for 12 months inorder to refinance out of the existing loan your mom has.

Or if you can document a 12 month cancelled checks you can refinance it now.

Possible solution is to buy the new house for your mother. This could prove difficlut if you are trying to get an owner occupied rate if you already own a home. The new home must cost more than your existing home or be at least 50 miles away from your current home. In addition, lenders will do verification to see if the distance is reasonable for owner occupied status