For the assumption you need to see the mortgage detail. If it is assumable/no qualify it’s a cinch.
Otherwise if you go to the bank they will want to do a qualification on you which could result in an increase in the interest rate. This is a formal assumption and the mortgage would be in your name.
If as you say you want to “assume” her payments and keep her name on the mortgage that is different. You would be taking the mortgage subject to. The bank could call the loan due on you. A land trust would be helpful for you if the mortgage has a due on sale clause.
Check her loan paperwork to see what the fine print says pertaining to the due on sale triggering.
Contrary to what the others have told you… - Posted by Rick Vesole
Posted by Rick Vesole on January 14, 2000 at 23:30:27:
You can in fact ADD a name by Quit Claim Deed. There are two ways. One is to deed it to yourself and the other person, the second is to deed a partial interest (such as a one-half interest) to the other person.
Generally the bank will not care if you add another name onto the title. As long as you yourself remain on the title, they will not consider it a violation of the Due on Sale Clause.
Perfect example: A single person gets married and adds new spouse onto deed. Bank would NEVER (hear that Arthur) call the loan. Same thing where someone wants to add on their child. The Garn St Germain Act specifically excludes a lender from enforcing its due on sale clause where the spouse or child becomes an owner.
Yes bank can I believe call the note due to title change…New person is not on note but owns half the property subject to the mortgage…I have never heard of a bank calling a note because they don’t usually get any notice of deed changes…It should state any restrictions in the original mortgage note.
Posted by Bill K. (AZ) on January 14, 2000 at 20:00:41:
Katie,
You don’t ADD a name to title with a “Quit Claim” deed. A “Quit Claim” deed REMOVES an interest, if there was any to begin with, in a property.
Changing names on a deed has no affect on who is responsible for a loan. However, if the one responsible for the loan is no longer the owner of the property, this can trigger the “Due on Sale” clause.
If a parent were to deed a 99% partial interest would it trigger the Due on Sale clause?
I’m trying to take over a property from my parents, want my name on the title, but don’t want to call the note. Would this work?
I presume your parents are the borrower. Children of the borrower may become an owner. This is a specific exemption to the DOS clause contained in the Garn St Germaine Act.
Any idea where I can view a copy of this act? If my parents do transfer the majority of the ownership to me, and I do pay her mortgage, I wouldn’t be able to deduct the interest right? The 1098 would be issued to her. Thanks for the help
Susan
What i wanted to know was, If i were to have a outside friend Quick Deed a house to me. Whould i be able to assume the mortgage with her name still on it, and just take over the payments? Then resell it in a year? The person is motivated to get rid of the house, because she does not want to go though the time and effort to sell it. She has already paid off about 10,000 on it. It would be a great deal if it works the way i think it would. Does anyone out there really knows if this whole thing would be possible?