mortgage called due to quitclaim

[flhusker]

undefinedWhat is the name of your state?
Florida

My fiance and I live with her mother. She is willing to quitclaim the deed to us but the mortgage company is telling the mother she cannot do this. If she does they will call the mortgage due. Can they do this?

[I AM ALWAYS LIABLE]

Originally Posted by flhusker

undefinedWhat is the name of your state?
Florida

My fiance and I live with her mother. She is willing to quitclaim the deed to us but the mortgage company is telling the mother she cannot do this. If she does they will call the mortgage due. Can they do this?

My response:

Yes they can, and they will. Read the mortgage contract. You and your fiance are not in privity of contract with the bank.

IAAL

[Samm1970]

You could prepare and file the quit claim deed and then refinance the home into your name right away. Or really you could do it simultaneously depending on the lender. Some lenders would want to see you in title on the title commitment, which means the quit claim would have to be filed prior to the title search. Others would be fine with evidence of the quit claim being filed at closing.

Either way, make sure you talk to a lender and ask them how to handle this and make sure you can get financing.

There are potential tax consequences so talk to an accountant too.

[HomeGuru]

Originally Posted by Samm1970

You could prepare and file the quit claim deed and then refinance the home into your name right away. Or really you could do it simultaneously depending on the lender. Some lenders would want to see you in title on the title commitment, which means the quit claim would have to be filed prior to the title search. Others would be fine with evidence of the quit claim being filed at closing.


**A: hello**************there is a due on sale clause.
**********

Either way, make sure you talk to a lender and ask them how to handle this and make sure you can get financing.

There are potential tax consequences so talk to an accountant too.

**A: the writer's can't qualify for financing.

[Samm1970]

A: hello**************there is a due on sale clause.

Not sure if you're just being funny here or not.

If I were their mortgage broker (Not soliciting ) and they were concerned about the due-on-sale, I'd include a copy of the unrecorded (but fully executed & notarized) quit claim deed in the file to underwriting and advise the underwriter it will be filed at closing of the refinance.

**A: the writer's can't qualify for financing.

You might be surprised who can qualify for mortgage financing when there is equity in the subject property. A decent pulse and good hand to sign the papers is really all one needs.

[iceblaze]

Set up a trust talk to a lawyer about how to do it they can help.

[nextwife]

MOM should talk to an attorney herself.

She needs to make certain that HER rights are protected, such as getting a life estate, if she intends to remain there, and that she does NOT remain liable for a mortgage on a property for which she has no legal ownership.