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Can you transfer property with an outstanding mortgage by deed before a lien is placed on the property?
Wiki User
∙ 11y ago
You could, but I wouldn't recommend it, at least certainly not without a written disclosure of the pre-existing lien. Depending on when the new deed is recorded, the mortgage may then be outside the chain of title. You do not mention whether you plan on paying off the mortgage, which is an important factor.
Another Perspective
It sounds as though you want to transfer your property, that is subject to a mortgage, to a new owner before a creditor can record a lien. That is not a good idea. First, mortgages in the US have a due on transfer clause. The lender can demand payment in full upon any change in ownership. Second, a deed transfer for the purpose of avoiding creditors can be voided by a court.
Wiki User
∙ 11y ago
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Can you transfer a house that still has a mortgage to a trust?
You should be very careful about transferring property that is subject to a mortgage. Mortgage contracts contain a provision whereby the lender can demand payment in full upon any transfer in interest. Transferring your property to a trust would trigger that clause and the bank could demand that you pay off your mortgage immediately. You should consult with your attorney before making such a transfer.Generally banks do not approve mortgages for property owned by an individual trust. Also, when you transfer a property that has an outstanding mortgage the property remains subject to the mortgage.
Does adding your name to a deed make you liable for payment?
It sounds as though the property is already subject to a mortgage. If that is the case you need to consult with an attorney before "adding" your name to the deed. Although that won't make you responsible for mortgage payments if may trigger an unpleasant situation.Mortgages have a due on transfer clause whereby if there is a transfer of ownership, the lender can demand immediate payment of the outstanding mortgage, in full. If the owner wanted to "add" you to the deed they would need to execute a deed transferring an interest in the property to you. That may trigger the due on transfer clause in the mortgage. You need expert advice before you proceed.It sounds as though the property is already subject to a mortgage. If that is the case you need to consult with an attorney before "adding" your name to the deed. Although that won't make you responsible for mortgage payments if may trigger an unpleasant situation.Mortgages have a due on transfer clause whereby if there is a transfer of ownership, the lender can demand immediate payment of the outstanding mortgage, in full. If the owner wanted to "add" you to the deed they would need to execute a deed transferring an interest in the property to you. That may trigger the due on transfer clause in the mortgage. You need expert advice before you proceed.It sounds as though the property is already subject to a mortgage. If that is the case you need to consult with an attorney before "adding" your name to the deed. Although that won't make you responsible for mortgage payments if may trigger an unpleasant situation.Mortgages have a due on transfer clause whereby if there is a transfer of ownership, the lender can demand immediate payment of the outstanding mortgage, in full. If the owner wanted to "add" you to the deed they would need to execute a deed transferring an interest in the property to you. That may trigger the due on transfer clause in the mortgage. You need expert advice before you proceed.It sounds as though the property is already subject to a mortgage. If that is the case you need to consult with an attorney before "adding" your name to the deed. Although that won't make you responsible for mortgage payments if may trigger an unpleasant situation.Mortgages have a due on transfer clause whereby if there is a transfer of ownership, the lender can demand immediate payment of the outstanding mortgage, in full. If the owner wanted to "add" you to the deed they would need to execute a deed transferring an interest in the property to you. That may trigger the due on transfer clause in the mortgage. You need expert advice before you proceed.
Can someone purchase a home and then deed it to you?
Yes, if they pay cash. However, if they borrow money to purchase the property and have a mortgage, they cannot transfer their interest unless they notify the bank. The bank will likely demand the mortgage be paid before the property is transferred.Yes, if they pay cash. However, if they borrow money to purchase the property and have a mortgage, they cannot transfer their interest unless they notify the bank. The bank will likely demand the mortgage be paid before the property is transferred.Yes, if they pay cash. However, if they borrow money to purchase the property and have a mortgage, they cannot transfer their interest unless they notify the bank. The bank will likely demand the mortgage be paid before the property is transferred.Yes, if they pay cash. However, if they borrow money to purchase the property and have a mortgage, they cannot transfer their interest unless they notify the bank. The bank will likely demand the mortgage be paid before the property is transferred.
What will happen to mortgaged property placed in trust?
The property will transfer subject to the mortgage. If the mortgage isn't paid the bank will take possession of the property by foreclosure. However, please note that most mortgage documents contain a 'balance due on transfer clause". That means if the title to the property is transferred the bank can demand full payment of the mortgage. You should consult with your bank before making this transfer.
What do you do when a person dies owing a mortgage and he conveyed the property before he died to someone who is not on the mortgage?
The property is still subject to the mortgage. The grantee should make arrangements with the bank to assume the mortgage. Some mortgage documents contain language that a transfer of the property will trigger a demand that the mortgage be paid in full. You should speak to the bank ASAP. Or, the grantee could just keep paying the mortgage.
Can a warranty deed transfer ownership while a mortgage exists?
You need to be careful about transferring property that is subject to a mortgage. Virtually all mortgage documents contain a clause that states any transfer of ownership will trigger a requirement that the mortgage balance be paid in full immediately. You should consult with an attorney or the lender before making any transfer.
Can a mortgage be omitted from probate if the property was deeded to someone else before death?
No, the mortgage is a debt of the estate. That mortgage must be resolved before the property can be transferred.
If your name is not on mortgage application can it be put on deeds?
No. All the owners by deed must sign the mortgage. A lender will require all owners to sign the mortgage in case there is a default and the lender takes possession of the property. If all owners didn't transfer their interest to the lender the lender cannot foreclose of the property. If the deed and mortgage are both done at the same time, all the owners by deed must sign the mortgage. A lender will require all owners to sign the mortgage in case there is a default and the lender takes possession of the property. If all owners didn't transfer their interest to the lender the lender cannot foreclose of the property.Also take note that if a parent grants a mortgage to a bank there is a due on transfer clause in the mortgage. That means if there is a transfer of ownership the bank can call in the full amount of the loan. Therefore if the parent transfers the property to their children after they have mortgaged the property, the bank can demand payment of the mortgage in full.You should seek legal advice before you act.
Can a lien hinder the transfer of land title?
If there is an existing lien on your property you can transfer the property to a new owner but the land is still subject to the lien. The new owner would have to pay the lien. Take care if the lien is a mortgage. In most cases the transfer of a property encumbered by a mortgage will trigger an immediate demand to pay off the mortgage. A property tax lien for delinquent taxes gives the town legal title to the property. You should also make sure your grantee is aware of the lien as it may have a detrimental affect on their use, enjoyment or continued possession of the property. Especially if a title examination will not be performed.
Can you quit deed a property if it has a mortgage?
You need to review your mortgage documents before making a change in ownership. Generally, mortgages have a due on transfer clause and the bank can demand full payment if there is any change in ownership. You should consult with the attorney who represented you at your closing when you purchased the property or when you financed it. Generally, you are not free to transfer your property if it is subject to a mortgage.Most mortgage documents have a 'due on transfer' clause that the mortgagor agreed to at the time of the signing of the mortgage. The bank must be notified of any transfer in interest or the mortgagor will be in breach of the agreement and the bank will demand payment in full. A quitclaim deed will trigger the due on transfer clause.If the property is transferred, the mortgagor is still responsible for paying the mortgage and the property is subject to the mortgage. If the mortgage isn't paid the lender will take possession of the property by foreclosure and the foreclosure will be reported on the mortgagor's credit record.If a new owner has agreed to take possession of the real estate subject to the mortgage the seller must notify the bank of the transfer of interest. The bank may require that the mortgage be paid in full and refinanced by the new owner. On the other hand the bank may agree to allow the new owner to assume the mortgage. In that case, the original mortgagor will be free of the mortgage obligation and no longer responsible for repayment.
How do you transfer a deed on a mortgage?
Your question is not exactly clear. I will interprete it as how do you transfer property that is encumbered by a mortgage. You should seek legal advice before transferring your interest in any property that is subject to a mortgage. Generally, the boilerplate language in any mortgage document states that the full balance will become due upon any transfer of the property. You would be responsible for payment and if the mortgage is not paid the bank will take possession of the property. Also, even if the bank didn't know of the transfer immediately, if the new owner failed to pay the mortgage the full consequences would fall on you. The bank approved you for the loan and you don't have the power to assign your approval to someone else. You should speak with a bank representative to see if the mortgage can be assumed by a new owner. At one time lenders allowed a subsequent buyer to execute an assumption agreement.
Do you have to sign a quick deed over to your soon to be ex in order for him to refinance before the divorce is finalized He told me I had to sign one before he could start checking into refinancing?
This matter should be addressed in your separation agreement and your attorney should handle it. Your transfer of your interest and his refinance should be done at the same time under the supervision of your attorney. You should not transfer your interest to him as long as there is an outstanding mortgage with your name on it. Your attorney should make certain the outstanding mortgage is discharged as part of the transaction.
