Financing in Pennsylvania>Question Details

Denise Cypre…, Other/Just Looking in Fairmount Park, Phil...

can a person still have name on deed but not mortgage?

Asked by Denise Cypress, Fairmount Park, Philadelphia, PA Tue Dec 7, 2010

Help the community by answering this question:


My daughter and son in law bought house but had bad credit. The deed is under both their
names. However his sister signed for the loan. Disagreement occurred in family -Can the sister sell the house or if my daughter and son in law continue making their mortgage payments would everything be okay.she sell
0 votes Thank Flag Link Fri Nov 14, 2014
Hello Denise,

Now that you are truly confused, let me clarify.

The deed is the document that names the owner(s) of the property.
The mortgage is the instrument that pledges the property as security in case a loan ( note) is not repaid.

The mortgage that we get to buy or refinance a house is comprised a note and the pledge of security for that note.

Therfore the mortgagor wants all people that own the property to pledge it as security for the note.
However all of the people that are on the deed and the mortgage do not have to be on the note.

If you own a house with a mortgage and note on it, and then add someone to title (as John suggests)
you have in fact broke the terms of the mortgage and given the lender the right to foreclose. you have invoked the alienation clause in the mortgage contract which requires that the note be paid off prior to any transfer of title.

So in short if you are on title9 or on the deed), you have to be on the mortgage.
However, if you are on the mortgage you do not have to be on the note.

Best Regards,
Alan Openshaw
Cornerstone Lending Inc
720 Second St Pike Suite 104
Southampton Pa 18966
Office 215 953 0800
Fax 215 953 1706
Cell 267 992 7276
Voted Best of Bucks 2010
0 votes Thank Flag Link Tue Dec 7, 2010
Yes. This can occur in a number of ways. Most often, the person would be added to the deed by the person who purchased the property. For example, John Smith buys a home. He's on the deed and the mortgage. He wants to add Denise Jones to the deed. The paperwork's quite simple. She's added to the deed, but only John Smith is on the mortgage.

There's also a technique for buying homes using that method. John Smith owns a home. But maybe he's considering walking away. It's upside down, or he can't afford it. Denise says: "Deed the home to me. I'll make the mortgage payments. You'll still be on the mortgage, but I'll be making the payments. At some point in the future, I'll refinance and remove your name from the mortgage." That's called a "subject to." John deeds the house to Denise. Denise is now the owner, but John is on the mortgage.

However, note that the first example isn't always advisable from a tax or estate standpoint. I'm not a lawyer, so this isn't legal advice. However, sometimes people try to add a new spouse to the deed, or try to transfer property to a child or grandchild just by adding the name to a deed. Often, that's not the best strategy. So, if you're considering being involved in something like that, please check with a lawyer (and perhaps an accountant) first.

Hope that helps.
0 votes Thank Flag Link Tue Dec 7, 2010
Don Tepper, Real Estate Pro in Burke, VA
Hi Denise,

A person can be on the deed but not on the mortgage, but in order to be on the mortgage, you have to be on the deed. Hope this helps!

Cherrie Catama
0 votes Thank Flag Link Tue Dec 7, 2010
Yep. Just as soon as the mortgage loan has been paid off.
0 votes Thank Flag Link Tue Dec 7, 2010
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