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  1. #1
    ecoisp Guest

    due on transfer clause

    What is the name of your state? Michigan
    Hello
    I owned a property with another couple and to get out signed a 'quick claim deed'. I checked with the mortgage company and was informed there is a 'due on transfer' clause which the mortgage company would invoke based on the quick claim deed. The other couple belives that they already owned the property so it is not a 'transfer'. What do you think?
  2. #2
    MortgageGuru is offline Member
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    I think you screwed yourself. Have the other couple refinance the note solely into their name or get you quit claimed back onto the property.
  3. #3
    ecoisp Guest

    Unhappy

    Thanks you, I was afraid of that.
    So the perspective is that this is not a 'transfer' because the other couple was already on the mortgage?
  4. #4
    Join Date
    Aug 2004
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    Exclamation You're Fine

    The deed did NOT transfer. There is no problem. You have only given up your title rights, not any obligation to a NOTE; (which is what needs to be paid off for 'due on sale/transfer.')
    You are still obligated to any NOTE you sign regardless of your vesting.
    The other couple does NOT have to pay the NOTE off. You do NOT have to quit on.

    Good luck,

    BriantheBanker
  5. #5
    ecoisp Guest
    BriantheBanker

    You say I'm still responsible for the 'note' and that is what I don't want, especially because I signed off my rights to the property. What I need is a way out of the mortgage or if need be back on the deed.
    I don't beleave I can get a loan for a new home with the exsisting mortgage.
    How can i motivate them to refinance?
  6. #6
    HomeGuru is offline Senior Member
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    Quote Originally Posted by ecoisp
    BriantheBanker

    You say I'm still responsible for the 'note' and that is what I don't want, especially because I signed off my rights to the property. What I need is a way out of the mortgage or if need be back on the deed.
    I don't beleave I can get a loan for a new home with the exsisting mortgage.
    How can i motivate them to refinance?

    **A: you messed up by not requiring a refinance BEFORE your signed the deed.
    Now you are stuck with a mortgage and no title ownership of the mortgaged property.
  7. #7
    Join Date
    Aug 2004
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    Talking proof of who is paying NOTE

    If the (other) guy can provide you with 12 months cancelled checks verifying (he) is paying NOTE, not you; you will be able to get financed.
    If the house is being rented, 75% of rent can be used to off-set the PITI payment.
    Quit back on to title. if you get back on title, You can hope they refi.
    good luck,

    BriantheBanker
  8. #8
    ecoisp Guest
    You guys (people) are awesome for your help.

    what is a "quit back"?

    otherwise I wait a year and I can shoulld be able to get a mortgage, but am still responsible for other.

    thanks
  9. #9
    Join Date
    Aug 2004
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    71

    Arrow in other words...

    You may not have to wait. 12 months was just an example. Some lenders may allow you to show a couple months of payments to over-ride payment.
    Quit .....means
    Some people think it is Quick Claim. the form you filed to get off title was a quit claim. you 'quit' off title.
    make sense?

    BriantheBanker
  10. #10
    HomeGuru is offline Senior Member
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    Quote Originally Posted by BriantheBanker
    If the (other) guy can provide you with 12 months cancelled checks verifying (he) is paying NOTE, not you; you will be able to get financed.
    If the house is being rented, 75% of rent can be used to off-set the PITI payment.
    Quit back on to title. if you get back on title, You can hope they refi.
    good luck,

    BriantheBanker
    **A: there is no such thing as a "quit back" on title.
  11. #11
    Join Date
    Aug 2004
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    Arrow ok

    so someone can't quit claim onto title???? File a deed and record it. (of course there is no such thing as quit back.) sometimes generalizing confusses the best of 'em.
  12. #12
    unapathetic Guest
    Everyone makes everything so complicated. If three people are on the title and mortgage, any one of them can quit claim off, but not all three. No one in Michigan considers this a transfer. You can get back on the title by taking the advice of Brian the Banker. You can also find all of laws pertaining to deeds at michiganlegislature.org. Do a basic MCL search using one word such as recording or deed.

    I would not have done that transfer since you are on the note. You gave away your collateral, not your obligation.
  13. #13
    nextwife is offline Senior Member
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    Quote Originally Posted by BriantheBanker
    so someone can't quit claim onto title???? File a deed and record it. .
    WTF! One can't just deed themselves ONTO title! The parties who are CURRENTLY in title must do the deeding. That's why one should resolve these issues PRIOR to deeding AWAY their interest.
  14. #14
    HomeGuru is offline Senior Member
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    Quote Originally Posted by BriantheBanker
    The deed did NOT transfer. There is no problem. You have only given up your title rights, not any obligation to a NOTE; (which is what needs to be paid off for 'due on sale/transfer.')
    You are still obligated to any NOTE you sign regardless of your vesting.
    The other couple does NOT have to pay the NOTE off. You do NOT have to quit on.

    Good luck,

    BriantheBanker
    **A: there indeed was a transfer of deed.
  15. #15
    HomeGuru is offline Senior Member
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    Quote Originally Posted by nextwife
    WTF! One can't just deed themselves ONTO title! The parties who are CURRENTLY in title must do the deeding. That's why one should resolve these issues PRIOR to deeding AWAY their interest.
    **A: correct, Brian and pathetic don't know what they are talking about.

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