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Confused: quit claim or novation?

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poptartgmb Joined: 25 Jan 2010 Posts: 1 1.37 Dollars($)	Posted: Mon Jan 25, 2010 7:03 pm    Post subject: Confused: quit claim or novation? Like 0 Dislike 0 I have read all the postings on this website and am still unclear. My in-laws are planning to retire in the next couple years and are moving out of state when they do so. My father-in-law has said he wants my husband and I to just "take over" the mortgage on their current house, which we'd love to do since we're currently in an apartment. He says that at the time he retires there would be like $60,000 left of the mortgage to pay. I understand a novation is done at the discretion of the lender, but I am still a little unclear. Would we refinance the $60,000 or however much he owes to buy him out? Or can he just sign the loan over to us and make it our responsibility? Would this require a quit claim, a novation, or both?
adonis Joined: 22 Oct 2005 Posts: 10250 Location: ALASKA 1043.57 Dollars($)	Posted: Mon Jan 25, 2010 9:37 pm    Post subject: Like 0 Dislike 0 Welcome poptartgmb, A quit claim deed will help you in transferring the property in your name. However, it won't transfer the mortgage. In order to get the home loan in your name, you would have to either refinance the loan or go for a novation. In most cases, lenders prefer refinance. You would be able to refinance $60,000 that would be left to pay off the loan. _________________ Procrastination is the enemy of your financial success

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