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 jjbnum3
Joined: 09 Nov 2007
Posts: 3
3.41 Dollars($)
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 Posted: Fri Nov 09, 2007 1:14 pm Post subject: I need help,want to transfer my mortgage to my parent. |
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And the house too a course.
In short my Dad wants to buy my house or really just take over the mortgage,because I'm on disability(I'm falling behind more and more,money wise) and I'm
not going back to work for a least another year.And he could use the right off for the interests.Plus he loves the house and the area.Foreshill,Ca.
The Loan.255,000
2 years into a fix rate 30 year mortgage ,6.625 rate from Indymac.
I called the lender and they tell me its a Non-assumable loan.
So they don't want to transfer the mortgage.
I'm going to keep trying though.
Me.
credit rating 750 to 800
No late payments(yet)
debt owed not including house mortgage 20,000
Dad
Credit score even higher rating,has 3 houses..Free and clear in California.
Income..retired
So he would be a even better client for the mortgage company.
Really want to avoid a refi,thats why we're looking just to transfer mortgage.Can we just trans ownership or add his name to the deed?
Not sure what to do here,any help would be welcome.
Thanks
Joe |
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livinginnky
Moderator
Joined: 08 Sep 2007
Posts: 596
23.69 Dollars($)
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| Posted: Fri Nov 09, 2007 1:58 pm Post subject: |
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I think refinancing (actually he will purchase it from you) will be your only option. Your current lender may only service and not therefore be allowed to let your father assume the loan.
I think you are right it would benefit the bank to let him assume the loan but like I said above they might not be able to... not because they don't want to.
Think of it this way. If he can get a lower rate, even with closing costs you guys might come out ahead anyway.
My next question would be... will the tax write off be enough to justify the purchase?... or would it make more sense to just help you with it?... and share any profits later on...
Best of luck and let me know if you have any additional questions.
_________________
Eric Matthews
Mortgage Refinance and Home Loan Guide |
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jenkin7
Joined: 04 Jun 2007
Posts: 939
140.80 Dollars($)
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| Posted: Fri Nov 09, 2007 10:21 pm Post subject: |
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Hello Jjbnum,
I agree with Eric completely. Simply transferring the ownership or adding your father to the title by a quit claim will not transfer the financial responsibility.
Your father has to refinance he mortgage in his name only and he might get a better rate.
Novation is another option by which you may transfer the mortgage to your father but you have to take the lender's consent before doing that. |
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