Is there anyway other than a mortgage of his name (family) or do you sell your house?

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a press conference and rally against the closure of a house in Minneapolis on 13 November 2009 Leslie Parks

3 Comments
  1. Reply
    glasier777
    April 29, 2011 at 10:49 pm

    If the lender allows the mortgage to be assumed, then you can usually transfer the mortgage to another person. If it is not assumable, lender can call the loan (force you to pay it immediately) if you try to transfer to someone else.

  2. Reply
    Espinito
    April 29, 2011 at 11:08 pm

    Yes, transfers are allowed. Think of it as a re-fi where the original mortgagee chooses to use a different lender. The mortgage is paid off, but the same person is applying for another loan elsewhere. What I’ve seen is that if the other person can somehow show that he’s been making the mortgage payments on the property, the new lender is willing to overlook the fact that this is not a purchase. Speak with a creative mortgage lender to achieve this…
    The more important, and costly issue, is that of pre-payment penalties. Make sure you won’t be penalized for the payoff and when you get the new loan, try not to be stuck with one. This is the most lucrative form of earning points for the mortgage broker. He’ll tell you your low fico got you a 2 year PPP, blah, blah, blah. Look for the Yield Spread Premium on your Closing Stmt. If it’s over 1% of loan value, he got paid and you got stuck…
    Assumptions are rarely allowed to others w/o a sale, so no one really even bothers to check. Don’t listen to anyone who tells you a sale is needed, 4%-6% of value is HUGE. Good luck.

  3. Reply
    benedictus
    April 29, 2011 at 11:13 pm

    the best way to transfer your mortgage to a familly member who has been living with you for at least 2 years ( it can be rent free) is to refinance the house and make that person the note bearer. The person has to at least be a brother, sister, child or spouse. A prepayment penalty might be assessed but it is usually minimal compared to losing the house)

    step one : quit claim that person on the deed

    step 2 get them qulified for a loan with a lender that will allow this type of transaction. If your broker has no clue i could sugest a few lenders to you that would.whole sale lenders most likely will do this thats why i sugest a mortgage broker and not your local bank.

    if you do not have a prepayment penalty this would only cost you about $ 11 for the quit claim deed about $ 365- $ 600 for the appraisal depending on your state and the cost of home owners insurance in their name ( this will have to be paid for a year up front for the insurance binder. the cost of the appraisal and insurance could come from the euquity in the subject property and not out of pocket.

    make sure you quit claim off the deed too

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