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Novation - Transfer mortgage to another individual

Posted on: 18th Nov, 2006 06:31 am
What is novation? Can anyone define it for me...
My divorce will be final next week. Due to new circumstances with my soon to be ex husband, I don't want the house. I plan on moving out of state. With the quit claim, will that free me of any mortgage obligations?
Posted on: 07th Jan, 2009 10:27 am
welcome,

to carla,

as far as i know, your husband's name cannot be automatically added to the property title. you will have to sign a quitclaim deed to add him to the property deed.

to arlene,

no, signing a quitclaim deed will help you in giving away the ownership of the property to your husband. once the quitclaim deed is signed, your husband needs to refinance the property in his name. once your husband refinances, you will be released from the liability of paying the mortgage dues.
Posted on: 07th Jan, 2009 11:13 pm
I recently purchased a home and would like to transfer it either to a non-profit organization or a for-profit corporation. Can I do that?
Posted on: 12th Jan, 2009 04:22 pm
Hi Khadi

If you have a mortgage on the property, then there are chances that the lender will not agree for such a transfer. If the property is free and clear, then you will face no problems in transferring.

Thanks.
Posted on: 13th Jan, 2009 12:46 am
My parents have been having a hard time paying their mortgage. Both have lost their jobs a few years back and have been living off of their savings. They want me to take over the payments and put the house in my name. Would this be a novation and quitclaim? Can I do this myself or do I need a real estate attorney?
Posted on: 26th Feb, 2009 09:36 am
Hi Tien,

Your parents will first have to quitclaim the property to you. Once the quitclaim deed is notarized and filed, you will have to refinance the mortgage in your name. Novation is also a process if transferring the mortgage but lenders prefer refinance over novation.

While filling out the quitclaim deed, you can take the help of an attorney but for refinancing the loan, you will have to contact the lender.
Posted on: 26th Feb, 2009 11:12 pm
Thanks adonis! I also looked into an assumption on my parents loan. Still waiting on that. I also ask an Attorney for some guidance and he pretty much said what you said. I was trying to see if there was anyway I can avoid the fees and closing cost with the refinancing. There is. Mom could do a sale that is "subject" to the existing mortgage loan. Loan and house stays in Moms name but the documents for the sale would say that I will be responsible for paying the mortgage. There is a slight risk however, if the lender see the sale on the title, then they will call the loan due triggering the due on sale clause. That's if the lender doesn't care. Little bit of a risk. There you go. I had to pay $200 bucks for that info. Now someone can have it for free. Thanks again!
Posted on: 06th Mar, 2009 02:40 pm
I got divorced over a year ago, signed a quitclaim deed when we divorced. she has now foreclosed on the mortage. i thought she would have to get my name off the loan, she never did now this is on my credit. what do i do? Thanks
Posted on: 10th Mar, 2009 03:08 pm
Hi Richard

As your name was on the mortgage, you were liable to pay the mortgage along with her. But now as the property has been foreclosed, your credit score will be equally affected due to it. Moreover, the lender may come after you for the deficient amount.

Thanks.
Posted on: 14th Mar, 2009 03:38 am
two cousins own home one wants out and other can not refinance one that wants out will quitclaim will this work and will the one who quitclaims have any rights to house if something happens to the other
Posted on: 15th Mar, 2009 10:53 pm
Hi cousins

The cousin who quitclaims the property to the other will not be able to claim the property if something happens to the other cousin. Moreover, if the other cousin can't refinance the property, then the one who quitclaims the property will still remain liable for the mortgage.

Thanks.
Posted on: 16th Mar, 2009 02:41 am
a relative of mine owns a house with her ex fiance, who badgered her into buying it. His mother is a cosigner on the mortgage. My relative has been paying the mortgatge/the ex fiance has only paid $800 of it. The ex fiance has been stalking and harrassing her, he doesn't live at the house, (IS AWAY AT SCHOOL)but has threatened to move in against my relative's wishes. She wants out of the agreement. What, if any, are her options?
Posted on: 26th Apr, 2009 07:18 pm
Hi

"She wants out of the agreement."

Was there any written agreement between your relative and her ex fiance? Is he listed on the title to the house? If he is not on the title, then he cannot claim his interest in the house and thus cannot move in without your relative's permission.
Posted on: 27th Apr, 2009 07:10 am
Hello to all. My mom has a mortgage through USDA Rural development. We have recently placed her in a nursing home. Her name is the only name on the mortgage. My brother and I have started making the mortgage payment. What are my options as to getting the deed/title placed in one of our names? I am allowed to speak to the USDA rural development on her behalf about the house. I just want to get the house in one of our names while she is competent. Or should we just let her draw up a will leaving the house to us? Please help if you can.
Thanks.
Posted on: 08th May, 2009 06:50 pm
Hi LaShonda,

As your mother is the only one on the loan and you will be transferring the property from her to one of you two, you will have to talk with the lender and get their permission. Otherwise, a change in the title without the lender's knowledge may result in an acceleration of the mortgage because of a due-on-sale clause in the loan agreement.
Posted on: 09th May, 2009 01:07 am
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