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 joc13508
Joined: 20 Sep 2009
Posts: 2
1.59 Dollars($)
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 Posted: Sun Sep 20, 2009 3:51 pm Post subject: Quit claim deed and mortgage |
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| My wife and my sister own a property in New Jersey together with an equity sharing agreement on the side. They are both on the deed but my sister is on the mortgage loan herself. We provided the down payment and she was going to make the payments. It is a beach condo for my sister to have. My sister can no longer afford the proeprty and is willing to quit claim the property to us and walk away. We want to do that. We would like to not pay tansfer tax and would also like to not have refinancing costs right now. We have excellent credit, the capacity to pay and equity in the condo. Must we pay off the loan right away or can we make payments on it in lieu of my sister until we refinance or pay off later? Are novations easy to get or should we not try so we don't raise a red flag? We would qualify for refinancing if we needed to get it. |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1737
36.13 Dollars($)
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| Posted: Sun Sep 20, 2009 4:14 pm Post subject: |
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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 |
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joc13508
Joined: 20 Sep 2009
Posts: 2
1.59 Dollars($)
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| Posted: Sun Sep 20, 2009 4:31 pm Post subject: |
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| Thanks for the quick response. My sister doesn't care as long as we take over the payments she will quit claim the property over to us. Could we continue on until the bank finds out or we refinance? |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1737
36.13 Dollars($)
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| Posted: Sun Sep 20, 2009 6:08 pm Post subject: |
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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 |
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smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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| Posted: Sun Sep 20, 2009 8:22 pm Post subject: |
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Hi joc!
Welcome to forums!
If your sister quitclaims the property to you, then you should refinance the loan in your name and then start paying off the dues. If you do not do so, your sister will still remain responsible for the loan payments. Or else, you can definitely pay off the loan immediately after she transfers the property to you. This will make the property free and clear.
Feel free to ask if you've further queries.
Sussane |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1737
36.13 Dollars($)
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| Posted: Sun Sep 20, 2009 9:25 pm Post subject: |
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| 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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