Posted on: 01st Dec, 2008 09:15 pm
a mix of questions about property transfer & mortgage, etc....our family is thinking of transferring the ownership of our house to my parents. however, we also have a mortgage on this property. the mortgage is under my sister’s name, but it’s been my parents paying the mortgage since the very first payment exclusively. (and that is why we think it is fair to have the house transferred to my parents.)
our questions are: 1) since my sister holds the mortgage, does her name have to be on the title of the property until it’s fully paid off? (so the mortgage company can have something to lien on?) or, does the mortgage law/policies allow her to completely transfer the ownership to my parents?
2) do we have to refinance this property? if we do, what should be done first: have the property transferred, get the refinance, or do both at the same time?
3) if we want to save the trouble of refinancing at this time, can we simply add my parents’ names to the current mortgage? is it legal, is it really saving the trouble?
4) who will get the tax exemption benefit, my sister, or my parents can have a share of it?
thanks so much if you can answer all my questions here.
our questions are: 1) since my sister holds the mortgage, does her name have to be on the title of the property until it’s fully paid off? (so the mortgage company can have something to lien on?) or, does the mortgage law/policies allow her to completely transfer the ownership to my parents?
2) do we have to refinance this property? if we do, what should be done first: have the property transferred, get the refinance, or do both at the same time?
3) if we want to save the trouble of refinancing at this time, can we simply add my parents’ names to the current mortgage? is it legal, is it really saving the trouble?
4) who will get the tax exemption benefit, my sister, or my parents can have a share of it?
thanks so much if you can answer all my questions here.
Hi yuting,
You and your family can transfer the property to your parents by signing a quitclaim deed. Once the family signs a quitclaim deed in their favor, they will have to refinance the mortgage. Once the ownership is changed, the lender will ask your parents to refinance it.
You will have to transfer the property first and then inform the lender. After that the mortgage should have to be refinanced. You cannot simply add your parents to the mortgage. Your parents will have to refinance the property.
As far as tax exemption are considered are you speaking about property taxes?
Thanks
You and your family can transfer the property to your parents by signing a quitclaim deed. Once the family signs a quitclaim deed in their favor, they will have to refinance the mortgage. Once the ownership is changed, the lender will ask your parents to refinance it.
You will have to transfer the property first and then inform the lender. After that the mortgage should have to be refinanced. You cannot simply add your parents to the mortgage. Your parents will have to refinance the property.
As far as tax exemption are considered are you speaking about property taxes?
Thanks
hi yuting,
there is nothing that your sister needs to hold the title of the property as long as the mortgage is not paid in full. once the property is transferred to your parents, they can refinance the property and start paying the mortgage payments.
yes, definitely your parents need to refinance the property as soon as the ownership is transferred in their name. lenders always want that the mortgage should be in the name of the owner of the property.
no, you cannot simply add the name of the parents to the mortgage. you will either need to refinance the loan or do a novation. novation is also a process of transferring the mortgage but lenders prefer a refinance.
thanks,
jerry
there is nothing that your sister needs to hold the title of the property as long as the mortgage is not paid in full. once the property is transferred to your parents, they can refinance the property and start paying the mortgage payments.
yes, definitely your parents need to refinance the property as soon as the ownership is transferred in their name. lenders always want that the mortgage should be in the name of the owner of the property.
no, you cannot simply add the name of the parents to the mortgage. you will either need to refinance the loan or do a novation. novation is also a process of transferring the mortgage but lenders prefer a refinance.
thanks,
jerry