Quitclaim deed

[imbarbara66]

What is the name of your state (only U.S. law)? California

I'm currently unable to obtain a home mortgage loan but my girlfriend has offered to use her name and credit if I can put up the down payment. This sounds great to me and we are wondering if it's possible for her to later transfer interest in the home by doing a quitclaim deed or some other type of transfer? Also, how does that work if the house is not paid off? I don't understand. As far as the mortgage company is concerned is she still the legally liable for making the payments? Can someone please explain this to me? Thank you

 

[justalayman]

most mortgage companies have a "due on sale" or "due on transfer of title" clause that would make her mortgage become due immediately on the transfer to you.


If she could obtain a mortgage that is assumable (I don't know how available these are given the current housing credit fiasco), she would be able to take out the mortgage and, if the lender approves of you sometime in the future, she could sell the house to you and you assume the mortgage.

Your GF would be liable for the mortgage until it is paid off or assumed, if that is a possibility.

the mortgage is attached to the house as well and allows the lender to foreclose and take possession of the house if the loan becomes delinquent. Even if you transfer title to your name, that attachment will follow.