Can transferring property rights between spouses through a quit claim deed result in a mortgage being called in even if mortgage continues to be paid regularly and on time?

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Post Posted: Tue Sep 01, 2009 3:48 pm    Post subject: Can transferring property rights between spouses through a q
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Can transferring property rights between spouses through a quit claim deed result in a mortgage being called in even if mortgage continues to be paid regularly and on time?...My husband is looking into beginning his own construction llc and in order to protect our multiple investment properties and personal home, we are considering transferring all into my name through a quit claim deed adn then forming individual llc for each property (all with remaining mortgages). However, we have also heard that a "transfer of ownership" can trigger a bank calling in the mortgage. Is this something to be concerned with? What are the implications down the road should we sell the properties jointly. All of this of course works on the assumption that we will not be getting divorced.
Icon Mini Profile sunnyca2009





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Post Posted: Tue Sep 01, 2009 10:57 pm    Post subject:
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Thats true, the bank may ask you to prove your eligibility to make payments and they want to be sure that the loan is paid.

In general some people do nto report it, but ti is a the best practise to report it to the bank about any changes
Icon Mini Profile savior70





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Post Posted: Wed Sep 02, 2009 3:52 am    Post subject:
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To Guest,

Most mortgages have an acceleration clause that allows the lender to call the entire mortgage amount due, in case there has been a breach of loan contract by the borrower. Thus, if the borrower sells the property or makes significant changes to the title, lenders have the right to demand the loan balance. But if you stay current on the loan, chances are that the lender would not mind any change to the title. But it is always best to inform them about any changes to the property title.
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