Posted on: 26th Mar, 2009 01:37 pm
my brother and i received a parent-child transfer four years ago, where the assessed property values were grandfathered (to low 1980s home prices). we are both on the grant deeds on all three properties, owned free and clear, no liens or debts. now, i am trying to take equity out via a refinance without putting my brothers interest on the hook and triggering a reassessment on the property values. i was told by a broker to do a quit claim until the refi was complete and then reverse the quit claim. does anybody know if it's ok or legal to do a quit claim and reversal within 5 or 7 days? and if so, will it trigger property tax reassessment?
chris
chris
That is no completely good advice from a license real esate broker. In most instances there is a clause in the deed of trust that will be signed that goes against deeding the property to someone else with out the banks knowledge. You can kick your loan into default and the full balance may be required of you liken to a foreclosure. You might as well keep his interest in the property and just get the loan in your name. He will have to sign the deed of trust but not the note.
Same difference if you don't try to go through this law breaking red tape. It is just the most honest way to do it. No matter if he deeds the property to you and deed the property back to him, there will still be a lien on the property and if something happens he still loses.
I don't think what he is advising you to do is legit.
Same difference if you don't try to go through this law breaking red tape. It is just the most honest way to do it. No matter if he deeds the property to you and deed the property back to him, there will still be a lien on the property and if something happens he still loses.
I don't think what he is advising you to do is legit.
Hi Chris,
I agree with what tawanastegall has said. Most of the loans come with a due on sale clause that allows the lender to call the loan amount due if any change in ownership takes place without their approval. Thus you cannot transfer the title to your brother without informing the lender. Moreover, a change in the title can also trigger a reassessment for tax purposes.
I agree with what tawanastegall has said. Most of the loans come with a due on sale clause that allows the lender to call the loan amount due if any change in ownership takes place without their approval. Thus you cannot transfer the title to your brother without informing the lender. Moreover, a change in the title can also trigger a reassessment for tax purposes.