Transfer of Title to Domestic Partner

[bojangles]

I have total title to a home property in Florida and would like to transfer title, or transfer the loan altogether to share with my domestic partner. The mortgage was bought by Fannie Mae, and is probably for around 40 percent of the total property value at this point. I was told by support personnel at Freedom Mortgage that I can't do a transfer of title. When I asked where in writing it says I can't do it, I was referred to this passage in my mortgage 'If all or any part of the Property or any Interest in the Property is sold or transferred ... without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument.' I pointed out that it says 'may' there and not that they have to. I asked how I could get their 'consent', or what the written document was that said they could not give consent. They couldn't provide me with any rule in writing but said their unnamed counsel said because she wasn't a relative they wouldn't do it. I asked where that was in writing and got no response. My question is, is it legal for them to refuse a transfer of title, or assumption based apparently on the whim of some unnamed individual, or do they need a written policy endorsed by Fannie Mae that demonstrates they are not giving prejudicial treatment to customers based on personal preferences.

 

[STEPHAN]

Yes it is legal and common practice.

Leave it as it is (do not transfer the houses ownership) or refinance together.

 

[bojangles]

Yes it is legal and common practice.

Leave it as it is (do not transfer the houses ownership) or refinance together.

Why do you say don't do it so emphatically? There are personal and legal reasons why I DO want to do it. Also, I understand Freedom Mortgage, who is the loan service agent, has the right to not consent to a transfer, but am concerned with how they decide whether or not they will do it, since by the passage quoted in my mortgage apparently there are circumstances where they *will* consent.

 

[justalayman]

. It is totally discretionary by the lender so they are neither obligated to allow a transfer nor give you a reason.

They do not allow a transfer of the title (without invoking the due on transfer clause) because it means a person that has not agreed to the mortgage (not the loan but the contract that gives the lender senior interest in the collateral) can attempt to dispute a foreclosure. If nothing else it makes things that much harder for them.

Is your mortgage loan assumable? If so then if partner assumes the loan then transfer the ownership when partner assumes the loan.

 

[bojangles]

.Is your mortgage loan assumable? If so then if partner assumes the loan then transfer the ownership when partner assumes the loan.

The only clause they can point to me is the one I quoted. It doesn't use the word 'assumable', but refers to transfer of title or sale of property.

 

[justalayman]

The only clause they can point to me is the one I quoted. It doesn't use the word 'assumable', but refers to transfer of title or sale of property.

Either the loan is assumable or it isn't. If it isn't, then unless your partner essentially buys the property from you you are where you are. You can ask the lender of the loan is assumable.

 

[tranquility]

Why do you say don't do it so emphatically? There are personal and legal reasons why I DO want to do it. Also, I understand Freedom Mortgage, who is the loan service agent, has the right to not consent to a transfer, but am concerned with how they decide whether or not they will do it, since by the passage quoted in my mortgage apparently there are circumstances where they *will* consent.

I am uncertain as to your concerns, but, it could be a transfer the mortgage holder could call the loan upon. Also, there is the gift aspect. You would probably (depending on the facts) have to report it.

As to a reason, it totally sucks to be the only one on the mortgage while another is on the deed. While I'm sure your love is forever, if it isn't, you are totally and completely screwed.

How long is your mortgage? Are you SURE your choice will be there for that time? Again, if not, no matter the reason, you are totally and completely screwed. I've always wanted a specific FAQ on the specific issue (partner on deed and not on mortgage) as so many write in on such a matter. It hurts to say, "Sorry, you have no legal avenue."

 

[bojangles]

Either the loan is assumable or it isn't. If it isn't, then unless your partner essentially buys the property from you you are where you are. You can ask the lender of the loan is assumable.

They have said that the loan is not assumable, but when I asked where that is stated in my Note or Mortgage they could only point me to the passage I quoted above. Which speaks of transfer of title and sale of property. Not assumability.

 

[justalayman]

They have said that the loan is not assumable, but when I asked where that is stated in my Note or Mortgage they could only point me to the passage I quoted above. Which speaks of transfer of title and sale of property. Not assumability.

If it is assumable it will say so. If it doesn't say it is, it isn't. It doesn't have to say it isn't assumable for it to not be assumable.

 

[latigo]

I have total title to a home property in Florida and would like to transfer title, or transfer the loan altogether to share with my domestic partner. The mortgage was bought by Fannie Mae, and is probably for around 40 percent of the total property value at this point. I was told by support personnel at Freedom Mortgage that I can't do a transfer of title. When I asked where in writing it says I can't do it, I was referred to this passage in my mortgage 'If all or any part of the Property or any Interest in the Property is sold or transferred ... without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument.' I pointed out that it says 'may' there and not that they have to. I asked how I could get their 'consent', or what the written document was that said they could not give consent. They couldn't provide me with any rule in writing but said their unnamed counsel said because she wasn't a relative they wouldn't do it. I asked where that was in writing and got no response. My question is, is it legal for them to refuse a transfer of title, or assumption based apparently on the whim of some unnamed individual, or do they need a written policy endorsed by Fannie Mae that demonstrates they are not giving prejudicial treatment to customers based on personal preferences.

It doesn't "say you can't DO IT". It says that if you DO DO IT, at its election the mortgage holder can call the note.

What is so difficult in understanding that?

Besides the lender is doing you a big fat favor in preventing you from making a stupid decision!

Just stick around these sites a while and you'll find others kicking themselves for it because the relationship went on the rocks. As most of them do.

 

[bojangles]

It doesn't "say you can't DO IT". It says that if you DO DO IT, at its election the mortgage holder can call the note.

What is so difficult in understanding that?

Besides the lender is doing you a big fat favor in preventing you from making a stupid decision!

Just stick around these sites a while and you'll find others kicking themselves for it because the relationship went on the rocks. As most of them do.

I am not looking for personnel advice, but legal advice. In fact other person put up half of the value of the down payment, and the down payment was half of the property value at the time. But at that point she was in between jobs and couldn't go on the load for credit reasons. She has since got another job and has good credit. So its not just the generosity of my heart but she is owed 1/2 ownership of the property.

Back to the legal issue, the point is that the only section I am shown in the Mortgage or Note that supports their decision, refers to Transfer of Title or Sale of property, not assumption.

 

[STEPHAN]

Refinance together.

 

[FlyingRon]

Refinance together.

Indeed, this is the way it will need to be done most likely.

"Domestic partners" are not protected by Garn-St. Germain. You transfer any part of your interest in the property to a domestic partner and a due-on-sale clause can be invoked. How likeley that is depends on your loan. These days, if you have an older, higher rate loan and you keep things current, they're less inclined to worry about it. Of course, it's probably in your best interest to refinance anyhow.

Whoever handles the closing (depends on custom in your community primarily: attorney, title/escrow office, etc...) can handle both closing the refi, paying of the old loan, and transferring the title.

 

[justalayman]

I am not looking for personnel advice, but legal advice. In fact other person put up half of the value of the down payment, and the down payment was half of the property value at the time. But at that point she was in between jobs and couldn't go on the load for credit reasons. She has since got another job and has good credit. So its not just the generosity of my heart but she is owed 1/2 ownership of the property.

Back to the legal issue, the point is that the only section I am shown in the Mortgage or Note that supports their decision, refers to Transfer of Title or Sale of property, not assumption.

The legal issue is:

If the loan does not say it is assumable, it isn't.

Given your new info, as another posted, your best action is likely to be to refinance the property using both parties as debtors and during that process transfer title to the both of you.

Be sure to investigate tenants in common compare to joint tenancy with rights of survivorship.