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maxamilliano
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 Posted: Tue Oct 27, 2009 8:52 am Post subject: Quit claim vs. Novation? |
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My partner and I live in the same house. Deed and Mortgage are both in my name. If something happens to me (death), how do I insure that the property does not revert back to the bank?
Some tell me that I need to quit claim and keep it in a safe place for her to file if it is needed. This does not really make sense to me, as the mortgage is seperate from the deed, and I could be left holding the mortgage with no claim to the property.
My thoughts were to Novate her name to the mortgage, so that the bank will be satisfied with payment, and can Tenancy in Common the deed to her upon my passing.
This would seem to protect me from having to be forced to sell should we decide to part company for whatever reason, yet offer protection to her upon my death.
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 savior70
Joined: 25 Mar 2009
Posts: 1778
Location: Florida
238.16 Dollars($)
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| Posted: Wed Oct 28, 2009 6:29 am Post subject: |
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Hi,
Quitclaiming the property can take your name from the property title, but the mortgage will still be in your name. Is it possible for you and your partner to refinance the loan? If you can refinance, you can add her name to the loan and with a quitclaim deed, she can also be added to the title.
You can add her to the mortgage debt through a novation agreement. But the problem is that not many lenders would want to do novation in this market. You can also talk with your lender if they would allow you to add your partner as joint tenant with right of survivorship. The survivorship rights will allow her to get the full ownership of the property after your death. |
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