Can I transfer the property and mortage altogether?

muccoco · Joined: 17 Jul 2008 Posts: 1 1.46 Dollars($)

I bought a property for a friend, as an investment. Therefore, I am the rigthful ower of the house, but I left the property management on him and in the last two months he has been having problems to came up with the money to pay the mortgage on the house.
Nevertheless, I do not want to take over the house, instead he has been talking to me about transferring the house to his uncle. They talk about a "friendly buyer" agreement, but I do not buy that DREAM. A friend related to the issue told me not to sing the deed or anything related to the property.
My question is, is there a way really transfer the ownership to comeone else, if not should I just rip off the agreement and take over the house. Or, if there's a legal way, how can I transfer the ownership and the mortgage altogether to his relative?

My friend talk to me about an Assumption Agreement of Deed of Trust or Mortgage, but I can not find any further and deep information regarding that, because I thing there's not included that clause on the mortgage.

Thank you very much, I'd really appreciate your time and answer.

kpatrick · Posted: Thu Jul 17, 2008 2:02 pm Post subject:

Hi Muccoco,

You can transfer the title, but you can't transfer the mortgage, unless it is assumable (which is doubtful unless it is a FHA loan). And you do not want to transfer the title, b/c then officially you will no longer own it, but you will still be responsible for the mortgage. If the relative can qualify for a mortgage, then great, sell it to him.

I have never heard of a "friendly buyer" agreement...that doesn't mean it is not out there, just that I have never heard of it. Maybe someone else on here can help you with that. But, as far as I see it, if your friend is unable to make the mortgage payments, and you don't care to carry him, then your only option is to sell the property, OR take over as property manager, get him out and rent it to someone who can make the pymts. If the Uncle is so interested in helping, maybe he can help your friend make his payments.

Also, be careful whenever you consider transferring title to a home, b/c the lender could call the loan which means you would have to pay it off in full.

Whatever you do, make sure you maintain control of the payments on the mtg and make sure they are on time b/c a late mortgage pymt will wreck your credit faster than anything.

Kim

jheard · Posted: Fri Jul 18, 2008 7:37 am Post subject:

kpatrick is right. Do not get into a situation where someone else is paying your mortgage. You are betting your good credit on someone else.

There are many ways to structure real property transactions. However, transferring the mortgage and title is just selling the uncle the property. You could still retain an interest.

If he does not have the money, you can transfer title to him, but retain a deed of trust (mortgage). Someone still has to pay the mortgage, though. It sounds like they want to have the property but have someone else pay for it. It just doesn't work that way.

Consult with a local real estate attorney.

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