quit claim deed vs adding someone to deed

Guest 0.10 Dollars($)

i have a friend that is struggling to pay for a rental property and wants to put the property in his wifes name only. what's the best way to do this? quit claim deed to her or add her to the deed and then refi. thanks

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi rico2live,

Welcome to the forum.

Your friend should inform the lender before quitclaiming the property. Otherwise the lender may claim the due mortgage in full under 'due on sale' clause or acceleration clause.

Even if he quitclaims, he will then, have to refinance in his wife's name. So does she have the eligibility to get approved?

Best of luck.

jameshogg · Posted: Sat Feb 02, 2008 5:50 am Post subject: RE: transfer rental property

Hi Rico,

Your friend should use a quitclaim deed as because the rental property already has a loan taken against it. This deed will help to quit his interest in property and transfer it to his wife. And then, comes the question of refinance. Alternatively the wife can refinance and while doing so, get the title transferred in her name.

Thanks

ckalvesmaki · Posted: Sat Feb 02, 2008 8:10 am Post subject:

How does adding the wife benefit him? Are they looking for a refi? And the wife has better credit?

lisascherzer · Joined: 04 Jan 2008 Posts: 749 94.10 Dollars($)

If the wife has good credit then he can just add the wife to title and have her refinance the home into just her name only. This can be done quite easily.

Guest 0.10 Dollars($)

Hi. We are trying to find out about the legality about adding my husband's name onto my mother-in-law's deed, she is 63 with problems and wanted to add his name. It was paid off, but a home equity loan was taken on it, would this interfere or legally can she add his name so we are covered and it goes to him in case of her death?

Jessica

Hi Amen4mom,

Welcome to our community forums.

What I can interpret from your post is, there has been a loan on the property which is paid off. But there is a home equity loan too and the lender or the company offering it may interfere with your mother-in-law adding your husband's name on the title.

First of all, you need to talk to the lender and inform him about the addition of a co-owner. Some lenders object, some do not. Those who object may call the loan due at once. You need to check the terms and conditions and find out what they say about such transfers. But this type of addition to the title isn't illegal though.

After your mother-in-law's death, the loan does not automatically pass on to your husband. He will have to refinance it in his name and simultaneously change the title from mother-in-law and his name to his name only.

I hope this will help you.

Regards,

Jessica

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