Getting on my fathers mortgage and title in PA

Guest

Hello, I live with my father is his house in PA. He got a mortgage
about 6 years ago through Wells Fargo, when his credit was very good.
Since then, he has had numerous late payments and received several
certified mailings warning him of default and foreclosure. That's when I
come in and pay the mortgage for him. Wells Fargo, to its credit, has
been relatively easy to deal with. For the most part, I have paid the
mortgage for the last 4 years.
Unfortunately, my credit is terrible. However, would Wells Fargo put me
on the mortgage as an added, albeit small, protection of their
investment? I would like to get added to the mortgage and the title. Do
I contact Wells Fargo first or tackle the quit-claim deed area first?
Or, do this end up as one in the same anyway?
I was hoping that, because of the mortgage crisis, these banks may be
more willing and open to this. Thank you so much in advance.

laphillips

Welcome Randy,

I wouldn't advise a quit claim. A quit claim deed can transfers interest in property but does not change legal obligations as far as the mortgage is concerned.

Also, changing title to the property could trigger the acceleration clause in the loan documents causing the balance to become due & payable.

Consult an attorney since laws, etc. can vary by state & ask if another way to go may be to set up a tenants-in-common deed. Again beware of the consequences of changing title.

At this point contacting Wells Fargo may be the way to go. Talk to the Loss Mitigation department, explain the current situation and ask about a loan modification.

Your father might want to also consider a Reverse Mortgage. There are many misconceptions connected to Reverse Mortgages. This HUD site http://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfm offers explanations and links to further information including publications.

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi Randy.

Welcome to the forum. Agree with Lynnette that you should talk with Wells Fargo to know whether you can refinance the mortgage loan on your name. Can you tell us how bad your credit is? If you have more than 680 score then you can get approve for the refinance with affordable rates and terms.

BTW if you can refinance the mortgage on your name then your father can quitclaim the property to you.

Best of luck,
Larry

Guest

Thank you Lynnette and Larry, I appreciate your feedback. I will contact Wells Fargo and see if they will modify the loan and out my name on it. I would think that this would be more favorable to everyone, unless I am missing something. Anyway, thanks again!

Caron · Posted: Mon Sep 01, 2008 4:56 am Post subject: RE: reverse mtg or refinance

Hi Randy,

I'd agree with Lynnette. Your father may qualify for a reverse mortgage if he's aged 62 or above. But of course he'd have to pay off the wells fargo loan as soon as he gets the reverse mortgage loan proceeds. By the way, has your father applied for Medicaid? he needs to take care of the fact that the reverse mortgage proceeds doesn't affect his eligiblity for such assistance.

Guest

It is against federal law, the Garn St. Germain Act, for a lender to pull the due on sale clause in certain instances. One such instance is quit claiming to children. another is quit cliaming to spouse..
these mortgage brokers should know this.

Guest

I had a house built on some land my parents gave. I went through a divorce and gave the ex wife the house her name was never on the house; I had it built before we were married. Ok she didnt keep it. Ok the house has since been sold twice and the onwer of it now may not be able to keep it any longer. Fortunately my cousin is the one who is in it now. Now when I had it built it was about $67,000; my payments were like $545.00 and that was in 1998. My cousin has been in it for fives and ther couple before that had it for at least two. My question is with a house being sold so many times and the original cost of the house started at 67ish shouldnt the house only have left what is owed now or can they keep selling this house for what is was when I had it built. I now do not have good credit but by my cousin now being the owner here is a chance for me to get back something I hate I gave up. So what is a quit-claim,acceleration clause, and what is the "Garn St. Germain Act"? And by the way the house is in the state of Mississippi.

smithsussane · Posted: Thu May 21, 2009 10:39 pm Post subject:

Hi Guest!

Welcome to forums!

The selling price of the property will depend upon the appraised value of the property. As a owner, your cousin can sell the property to you as per the appraised value. If there is a mortgage on the property, then you will have to refinance it in your name.

However, if the mortgage docs have an acceleration clause, then, as soon as your brother sells off the property to you, he will have to pay off the mortgage dues in full.

As far as I know, Garn St. Germain Act is an Act which was introduced to revitalize the housing industry by providing financial stability of home mortgage lending institutions and making home mortgage loans available. It was a Reagan Administration initiative.

Feel free to ask if you have further queries.

Sussane

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