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joc13508 · Joined: 20 Sep 2009 Posts: 2 1.61 Dollars($)

My wife and my sister own a property in New Jersey together with an equity sharing agreement on the side. They are both on the deed but my sister is on the mortgage loan herself. We provided the down payment and she was going to make the payments. It is a beach condo for my sister to have. My sister can no longer afford the proeprty and is willing to quit claim the property to us and walk away. We want to do that. We would like to not pay tansfer tax and would also like to not have refinancing costs right now. We have excellent credit, the capacity to pay and equity in the condo. Must we pay off the loan right away or can we make payments on it in lieu of my sister until we refinance or pay off later? Are novations easy to get or should we not try so we don't raise a red flag? We would qualify for refinancing if we needed to get it.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1731 35.55 Dollars($)

Only way you cna keep the property is by refinancing the loan

If your sister does a q quit claim deed that will not clear her from the loan

joc13508 · Joined: 20 Sep 2009 Posts: 2 1.61 Dollars($)

Thanks for the quick response. My sister doesn't care as long as we take over the payments she will quit claim the property over to us. Could we continue on until the bank finds out or we refinance?

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1731 35.55 Dollars($)

It is always goodtonotify the bank.

The bank may not worry aslogn as they get the payemnt

The problem will be when you stop makign payments

smithsussane · Posted: Sun Sep 20, 2009 8:22 pm Post subject:

Hi joc!

Welcome to forums!

If your sister quitclaims the property to you, then you should refinance the loan in your name and then start paying off the dues. If you do not do so, your sister will still remain responsible for the loan payments. Or else, you can definitely pay off the loan immediately after she transfers the property to you. This will make the property free and clear.

Feel free to ask if you've further queries.

Sussane

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1731 35.55 Dollars($)

I think ther will be some documentation process which needs to be completed if you pay off the loan, since the loan is still in yoru sisters name

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Quit claim deed and mortgage