Took over mortgage payments, but what kind of paperwork is needed to add my name to the house?

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My in-laws could not keep up with mortgage payments, so instead of forclosing, we moved in and took over payments. We would cannot get a home loan at this time, so they would like us to somehow own and have rights to keep this property. Currently, loan is under my father-in-laws name, and the deed, has both mother & father-in-law’s names. What kind of paperwork do we need to at least add one of our names to the deed? And where can we get them? Thanks

  1. Reply
    February 2, 2011 at 5:31 am

    You need to go to your county recording office with your inlaws either they can add your name to the deed or can transfer the deed to you, but if all 3 of you are in the deed when you want to sell the property they have to sign also. And if they transfer the deed to you only, you are the only owner of the house.
    Remeber if they transfer the deed to you they still liable for the loan.
    And check with any Mortgage loan officer to make sure the type of loan your inlaws have will allow them to transfer the deed to you
    Hope it helps

  2. Reply
    February 2, 2011 at 6:01 am

    The current lender’s loan represents a lien on the property, and the lender will not release its interest in the property until the loan is paid off. Unfortunately, most home loans now are not assumable, and you can’t simply be “added” to the loan.

    Since you’re making payments on the loan, you’re effectively just paying that much in rent to your in-laws. They can quitclaim their interest in the property to you, but they’re still responsible for the loan payments. A quitclaim can easily be completed, notarized, and filed with the county recorder, but this is probably not in their best interest for several reasons, not the least of which that they’re still responsible for the loan balance outstanding. Also, technically, most loans have a “due on sale or transfer” clause, which means that the bank’s loan can become fully due and payable if the home is sold or if interest in the home is otherwise transferred.

    You don’t say why you can’t get a home loan at this time, but maybe you can all get a new loan together, so that you’re at least one of the borrowers named on the loan. Hope that helps – good luck.

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